Butterfield and Son Ltd. yesterday reduced its Bermuda dollar base rate by one quarter of one percent to 5.75 percent.

The new rate takes effect on Monday and is the lowest since the introduction base rate in April, 1994.

"We are pleased to continue to pass on the benefits of lower worldwide interest rates to our cutomers who borrow from us at rates linked to the bank's Bermuda dollar base rate,'' chief financial officer Richard Ferrett said yesterday.

The bank is also reducing by a quarter of one percent its US dollar prime rate to eight percent and the Canadian dollar prime rate to seven percent.

The bank has also decided to reduce by a quarter of one percent the savings rates paid to Strata and passbook deposit holders.

The bank reduced its Bermuda dollar base rate by one quarter of one percent on October 9, in line with a quarter point easing in US interest rates.

At that time the bank said the cuts would not affect the interest rates paid on both its Strata savings accounts and passbook savings.