HSBC Bank Malta said this afternoon that following the recent decision by the European Central Bank (ECB) to reduce interest rates by 50 basis points, it had decided to pass on the full rate reduction to its borrowing customers.

The bank’s Lending Base Rate will be 2.5% and its Home Loans Base Rate 2.25% as from Wednesday.

The bank will be reducing its deposit rates by an equivalent amount. However, the ordinary savings rate and 7-day and 1-month term deposits are being reduced by 25 basis points and not 50 basis points.

There in no change to the 3.5% 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.

“Given the increasingly challenging economic environment we have passed on the full benefit of this latest round of rate reductions to all of our borrowing customers. Interest rates for borrowing customers have never been lower and we believe this move will benefit the Maltese economy," the bank said.