percent to 5.75 percent as from Monday.

This is the lowest level that the bank's Bermuda Dollar Base Rate has been since July 1999. The bank is also reducing its US Dollar Prime Rate to 8.50 percent on the same day.

Richard Ferrett, executive vice president and chief financial officer of the bank, said: "We are continuing to pass on the benefits of lower US interest rates to our customers who borrow from us at rates linked to the bank's Bermuda Dollar Base Rate.'' Strata and Passbook savings rates remained unchanged when the bank's Bermuda Dollar Base Rate was last reduced by 0.50 percent on January 15 2001, but the bank has decided to reduce these also to reflect market conditions.

Mr. Ferrett said: "However this will only be by 0.50 percent, not the whole 1 percent interest reduction enjoyed this year to date by our customers borrowing at rates linked to the Bermuda Dollar Base.'' The interest rate paid on Passbook Savings accounts will be 2.00 percent, with effect from Monday. Strata Savings rates for balances up to $24,999 will change to 3.75 percent and balances of $25,000 or more will attract an interest rate of 4.25 percent from the same date.

"The bank will be giving 90 days notice to existing variable mortgages of a further decrease in their interest rate by 0.50 percent, to take effect from Monday 7th May 2001. Customers with personal loans and mortgages at fixed rates of interest are unaffected by the change,'' said Mr. Ferrett.