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NOTICE: INCREASE IN HBZ BASE RATE FOR GBP & USD
Dear Customer,
On 22 June 2023, the Bank of England (BoE) increased their base rate from 4.5% to 5.00%. Meanwhile, the Federal Reserve (Fed) benchmark interest rate targeted range is currently between 5% to 5.25%.
We continue to absorb some of the impact of increase in interest rates by keeping the HBZ Base Rates below BoE and Fed rates. However, these recent changes have impacted our costs significantly.
In light of the factors mentioned above, we are writing to inform you that the Bank has decided to increase ‘HBZ Base Rate’ by 0.50% for both GBP and USD effective from 23rd August 2023. This applies to arranged and/or temporary borrowing and/or trade finance facilities in GBP and USD as per table below. There will be no impact if you do not have any arranged and/or temporary borrowing and/or trade finance facility(ies). For full information in this regard, please refer to the table below.
| CURRENCY | CURRENT HBZ BASE RATE | NEW HBZ BASE RATE | INTEREST RATE INCREASE | EFFECTIVE DATE |
|---|---|---|---|---|
| Pound Sterling (GBP) | 4.00% | 4.50% | 0.50% | 23rd August 2023 HBZ Base Rate will be 4.50% |
| United States Dollar (USD) | 4.25% | 4.75% | 0.50% | 23rd August 2023 HBZ Base Rate will be 4.75% |
We endeavour to provide you with best service and thank you for your trust and continued business with us. If you have any questions, please do not hesitate to contact your relationship manager or any other member of the service team at the branches.
Your sincerely,
Habib Bank Zurich plc.
United Kingdom