Capital G has joined the growing list of Bermuda's banks considering their next move following the US Federal Reserve's decision to cut interest rates by half a percent earlier in the week.

On Tuesday the Fed slashed its interest rates from 5.25 percent to 4.75 percent, with the Bank of Bermuda saying it is weighing up its options in response and Butterfield Bank refusing to comment on the matter.

Capital G are now the latest in a line of the Island's banks to take into account its reaction to the interest rates reduction, bearing in mind the impact it would have on its customers primarily.

A statement they released read: "In response to market pressures the Federal Reserve has lowered by half of one percent, the rate at which member banks lend surplus reserves to each other, along with also cutting the discount rate by the same amount.

"The discount rate is the rate that the Fed will advance short term loans to banks. While BMD interest rates typically follow the direction of USD rates they don't necessarily do so in lock step. We are currently weighing the many factors which go into such a decision and the effects on both our borrowing and savings clients before making any changes.

"Capital G monitors global economic and domestic trends on an ongoing basis to ensure its customers receive competitive and fair rates of return on their valuable cash deposits. We will continue to introduce a variety of savings options which are unique to both the short and long term goals of our customers and residents overall, while maintaining the already full complement of banking services and products already available to Bermudians."