HSBC Bank To Raise Its Base Lending Rate
HSBC Bank Bermuda announced today “that it will increase its base lending rate by 0.50%, effective 4 October 2022.”
A spokesperson said, “The Bank would like to make its customers aware that the base rate for Bermuda dollar residential mortgages and consumer loans will increase by 0.50%, i.e. from 3.50% to 4.00%. This will be the Bank’s first base lending rate increase on residential mortgages and consumer loans since 2019 and follows a 0.25% reduction in 2020.
“The base rate for Bermuda dollar commercial loans will increase by 0.50% to 4.75%, representing the first commercial rate increase since 2011 and it comes two years after a 0.50% reduction in 2020.
“Since the start of the year, US interest rates have risen by 2.25%, including the most recent 0.75% increase in July. The Bank considers a number of factors when reviewing whether it should increase its base lending rate and has sought to insulate customers as much as possible, from changes of this nature.
“In addition to this announcement, impacted customers will receive a letter outlining their respective new payment amount and the revised rate will be published on the Bank’s website at https://www.hsbc.bm/loans/rates/.
“HSBC Bermuda thanks its customers for their continued business and invites them to contact their Relationship Manager should they require assistance. Residential mortgage and consumer loan holders may also send an email to hbbm.blr.change@hsbc.bm, should they have questions in relation to the change.”
HSBC is a disgrace. If you have money to save, the rates go down!
And the rates on their Savings and Deposit accounts? The ones that quickly dropped to match dropping interest rates. Will they now rise too to keep up with rising interest rates? To help encourage saving in this time of increasing inflation. Yes? No?
Greed!!! Banks, oil companies, etc. all continue to increase their wealth.