However, it has determined to leave the interest rates paid on both its high interest bearing Strata Savings accounts and its Passbook Savings accounts unchanged.
"We are pleased to pass on the benefits of lower worldwide interest rates to our customers who borrow from us at rates linked to the Bank's Bermuda Dollar Base Rate", said Richard Ferrett, Executive Vice President and Chief Financial Officer. "They represent a majority of our customers to whom we provide borrowing facilities."
"The Bank is also pleased to announce that it has decided not to reduce the interest rates paid to customers with either Strata or Passbook Savings accounts", he said.
"We recognize the importance of these savings accounts to a large section of our customer base and will look to maintain the current interest rate levels paid on these accounts for as long as possible".
"There has been significant turbulence in the world's major financial markets over the past weeks which made it appropriate to evaluate carefully the implications for Bermuda Dollar interest rates. The Bank felt now was the appropriate time to cut its Bermuda Dollar Base Rate."