The gap between the European Central Bank (ECB) rate and the average interest rate paid on euro offshore savings accounts is narrowing, according to Investec Bank Channel Islands.
The difference decreased from 0.32% on 31 July 2008 to 0.18% on 31 October this year, according to the latest wave of the firm's Euro Offshore Savings Account index. It reveals, while the ECB rate dropped by 50 basis points to 3.75% on 8 October, the overall average interest rate on euro offshore savings accounts fell by only 36bps. As a result, the average return on euro offshore savings accounts before the period was 3.57%, just 18bps below the ECB rate. This is the smallest gap recorded since the index started in 2006. Laura Preston, a spokeswoman for Investec Private Bank in Guern...
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