Butterfield Bank has announced that it adjusted its prime rate for US and Cayman dollar lending for residential mortgages, consumer loans and corporate loans, in step with the recent increase in the US Federal Funds Rate.
The US and CI dollar prime rates will increase by 0.25% effective 21 March.
Rates paid on fixed-term deposits with terms of 90 days or more will be increased in line with the market.
The US Federal Reserve approved a 0.25% rate hike on Wednesday, the first increase since December 2018.
The Fed’s policymaking Federal Open Market Committee indicated there would be further rate hikes at each of the six remaining meetings this year. This would bring the funds rate to 1.9% by the end of the year, a full percentage point higher than the committee had indicated in December.
Fed officials also lowered their expectations for economic growth and sharply raised their outlook for inflation.
For consumers, increases in the Fed’s benchmark rate mean higher interest on credit cards, loans and flexible mortgages loans.
In Cayman, such financial products are typically priced at a margin above the Fed’s fund rate and adjust automatically when US interest rates change.
Detailed deposit rate information will be available on Butterfield’s website and at Butterfield Banking Centres. For information regarding rates and payment terms, clients can call 949- 7055.
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