HSBC cuts lending rate by 50 points

HSBC Malta will be passing on the full rate reduction to its borrowing customers following the European Central Bank's decision to reduce interest rates by 50 basis points, the bank said yesterday.

From tomorrow, its lending base rate will be 2.5 per cent while its home loans base rate will be 2.25 per cent.

The bank is also reducing its deposit rates by an equivalent amount, however the ordinary savings rate and seven-day and one-month term deposits are only being reduced by 25 basis points and not 50 basis points.

Furthermore, there in no change to the 3.5 per cent interest rate on the 15-month advance bonus account, which is currently on offer.

Interest on the online banking account will be reduced by 50 basis points for balances less than €5,000 and 100 basis points for balances of €5,000 and over.