A move by the US Federal Reserve Board this week to increase interest rates for the first time in four years did not result in an increase from local banks yesterday.

Bank of Bermuda, announced it was not increasing its base rates in response to the announcement from the Federal Reserve Board, after the US saw an increase in short term interest rates by 0.25 percent.

Head of banking services Michael Collins, said: “The Fed rate is very important, but we are also impacted by factors in our own local market. We will of course monitor the situation on an ongoing basis, as, while we do not necessarily move in parallel with the Fed, we are impacted by their changes and over the long- term respond in a similar fashion.”

The bank said the Fed's base rate represents the benchmark for pricing of their demand loans, mortgage loans and overdrafts in Bermuda dollars.

Shares cancelled

Butterfield Bank yesterday advised that in June it had bought back and cancelled a total of 19,600 of its own shares at an average price of $42.65.

The repurchases were made under the share repurchase programme announced in January.

Butterfield's shares were yesterday trading on the Bermuda Stock Exchange at $42, with $42.65 being the bank's 52-week high.