would be lowering its Bermuda dollar base rate, the Bank of Bermuda announced yesterday that it will be following suit.

The Bank will lower its rate by a half a percent to 6.25 percent with effective from next Monday, January 15.

Bermuda Home, a subsidiary of the Bank will also lower its variable mortgage rates by half a percent next Monday.

"Our decrease is in response to the decline in market rates that was triggered by the Federal Reserve Board's action last week to lower short-term interest rates,'' said Danny Fox, senior vice president retail clients at the Bank.

Although that was a US decision Mr. Fox said the Bermuda economy is heavily influenced by "other world economies''.

"The bank finds it necessary to align our local interest rates to those prevailing in the US.''