Butterfield Bank today announced it will reduce its Bermuda Dollar Base Rate by 0.50%, to 3.75%, with effect from 9 October 2008.
Customers with existing variable rate residential mortgages will see a 0.50% reduction in their interest rates from 7 January 2009. This reduction follows an announcement in March 2008 of a 0.75% cut to variable rate residential mortgages which took effect on 23 June 2008.
Richard Ferrett, Chief Financial Officer and Executive Vice President said, “This morning in a coordinated action, the US Federal Reserve, European Central Bank, Bank of England, Bank of Canada and several other central banks lowered their overnight rates by 50 basis points. We are pleased to pass on the benefits of this decision by lowering interest rates to our customers who borrow from us at rates linked to the Bank’s Bermuda Dollar Base Rate.”
Customers with personal loans and mortgages at fixed rates of interest will be unaffected by the change.