An uncertain outlook for offshore deposits

Interest rates are still the major criteria when choosing where to place cash holdings. The general consensus is that sterling interest rates are likely to be held in 2005, with some economists indicating that there may possibly be one more rate rise this year before the peak in rates is reached in this current cycle. The impending implementation of the EU Savings Tax Directive (EUSTD) may have a major impact upon the offshore finance industry. It looks increasingly certain that the implementation date will not be postponed further and that 1 July will see either the application of aut...