RE: Bank of England Base Rate change

Dear Customer,

Last week, the Bank of England (BoE) raised the Base Rate by 0.15% to 0.25% for the first time in 3 years. As reported, the increase in the Base Rate was considered necessary by BoE's Monetary Policy Committee (MPC) to tackle surging inflation, which amounted to 5.1%, the highest level in the last 10 years. The BoE estimates that the inflation will further increase until spring of 2022 before tapering off in the latter half of 2022.

Following the BoE decision to increase the Base Rate, several lenders have announced increase to mortgages rates. As you are aware, Habib Bank Zurich plc (the “Bank”) sets its own base rate (HBZ Base Rate) for the borrowing facilities offered to its customers. In the past the Bank has amended its HBZ Base Rate following a change in the BoE Base Rate.

On this occasion, the Bank has decided to leave its HBZ Base Rate for GBP unchanged for the time being. This will enable you to plan your financial arrangements in these uncertain times. The Bank will continue to keep its HBZ Base Rate at 0.75% and will notify you of any changes as necessary in future.

We wish to thank you for your business and trust and endeavour to provide best service in line with your banking needs. If you have any questions, please do not hesitate to contact your relationship manager or any member of the service team in our branch network.

Yours faithfully,

Habib Bank Zurich plc