Local banks follow US with interest rate cut
(CNS): Since the US Federal Reserve announced a 0.5% interest rate cut last week, some local banks have followed suit and reduced prime lending rates by the same amount. Butterfield, Cayman National and Proven Bank have all issued notices that their CI$ and US$ prime lending rates are decreasing from 8.50% to 8.00%. While interest rates here remain high compared to the United States, the move by local high street lenders to drop the rates will borrowers make ends meet since inflation was turbo-charged by the COVID-19 pandemic in 2020.
After announcing the first interest rate cut in four years, Federal Reserve Chair Jerome Powell said the US economy was in a good place and the decision was designed to keep it there. “This recalibration of our policy stance will help maintain the strength of the economy and the labour market and will continue to enable further progress on inflation as we begin the process of moving towards a more neutral stance.”
The shift marks the start of a monetary-easing cycle and a bet that inflation in the United States, which has stabilised, is going to continue falling. The likelihood of a recession remains low. “I don’t see anything in the economy that suggests the likelihood of a downturn is elevated,” Powell said.
“You see growth at a solid rate. You see inflation coming down and see a labour market that is still at very solid levels. So I don’t really see that, no,” he added at a press conference about the rate increase.
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Category: Banking & money, Business
Where does CNB issue these customer “notices” to? Cayman New Service? Other media outlets?
I don’t seem to receive these even though it’s mandated by law.
CNS: The only bank we received a press release from was Butterfield. For the others, I looked on their websites. It was on the CNB site when the article was written, but I don’t see it now.
I could not care. It only matters to me if CUC cuts dividends and I am affected.
cnb still offering loans at prime +2. still too high.
So where is FCIB (First Caribbean) rates cut? They have been raising rates in exact unison with the Federal reserve, how come i haven’t heard about a rate cut yet? This happened on the 18th, why are we not getting the cut this month? PROVEN BANK HERE I COME!
The thing the bank you’re going to has proven is that it knows how to change names.
You clearly haven’t been here very long if you think Fidelity is going to be the solution to any of your problems.
When will our Credit Union be following suit?