Euro offshore savings interest rate gap 'widening'

Investec’s Guernsey based subsidiary says the gap between average interest payments on Euro offshore accounts and the ECB base rate has reached 0.7% by the end of July 2007. At the end of April 2007, the average return of a Euro offshore account was 3.11% with an ECB rate of 3.75%, a 0.64% difference.  By the end of July, the ECB rate had risen 25 basis points to 4.00% while the average savings interest had risen by 19 basis points to 3.3%, a 0.7% difference. Furthermore, in October 2005, disparity between the ECB base rate and average offshore savings rates was just over 0.5%, indicating...