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Clarien says no change to base rate

Clarien Bank will not increase its Bermuda dollar base lending rate in the wake of the US Federal Reserve yesterday announcing it was raising interest rates by 0.25 per cent.

The bank said it will “continue to monitor changes in the global interest rate environment, Bermuda's macroeconomic conditions and their impact on clients. In the event that changes are required to the base rate, clients will be notified in accordance with the terms and conditions of their loan or mortgage documents”.

Ian Truran, chief executive officer of Clarien Bank Limited, said: “While Clarien's base rate has remained 25bps (basis points) lower than some competitor base rates, we are conscious of the potential negative impact of a base rate increase on our borrowers during these continued challenging economic conditions. We will consider the need to change Bermuda Dollar Base rates in the future dependent on further decisions by the US Federal Reserve, however we have chosen not to do so at this time.”

Clarien's Fed Funds savings rates will increase 25bps from 0.25 per cent to 0.50 per cent with immediate effect.

Butterfield Bank yesterday said it would not be raising residential mortgage rates or interest rates on savings, however, it will increase the base rate used to determine commercial mortgage and lending rates by 25 basis points.

And in a brief statement yesterday, a HSBC Bermuda spokeswoman said: “HSBC economists forecasted a small rise in the US interest rates in December and we await their view on its effects on the market.”

Clarien Bank CEO Ian Truran

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Published December 17, 2015 at 12:01 pm (Updated December 17, 2015 at 12:01 pm)

Clarien says no change to base rate

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