Bank of Valletta said this afternoon that it will lower its base rate to 3.75% from October 13.

The decision was taken after the European Central Bank lowered its refinancing rate by 50 basis points.

The bank said that with effect from October 13, interest rates on all deposit accounts denominated in euro will decrease by 0.50% per annum. Similarly, interest rates charged on commercial loans and overdrafts, personal loans and mortgages will be revised downwards by 0.50% per annum. Debit interest rates on credit card accounts will also be lowered by 0.50% per annum.

Finance Minister Tonio Fenech, speaking in Parliament yesterday, welcomed the ECB rate cut decision and said he hoped the reduction would be passed on to Maltese consumers.