The Bank of Bermuda this afternoon announced it is reducing interest rates by 0.5 percent immediately for all personal loans and mortgages bringing the base rate for personal lending to 3.25 percent.

It comes after the US Federal Reserve reduced its lending rates to one percent today.

Philip Butterfield, Chief Executive Officer, said: “Bank of Bermuda has decided to once again pass on the reduction in interest rates made by the US Federal Reserve to our customers.

“This marks the Bank’s fourth reduction in interest rates this year. In total, we have reduced the cost of borrowing for all of our personal customers by 1.75 percent during 2008.

“Our objective is to provide competitive rates to support our customers during these uncertain economic times. In determining our base rate, Bank of Bermuda takes into account a number of factors not limited to but including, the US Federal Funds Rate, along with local market conditions.”

* See The Royal Gazette tomorrow for the full story.