HSBC Bermuda has decided to leave its lending rates unchanged in the wake of the US Federal Reserve’s rate hike yesterday.

The bank’s announcement means that monthly repayments and terms for variable-rate loans and mortgages will not change for HSBC Bermuda customers.

Yesterday, Butterfield announced that it would increase its base Bermuda dollar lending rates for loans and mortgages by a quarter of a percentage point, in line with the increase in the US Federal Reserve’s federal funds rate.

However, Butterfield added that monthly repayments would not change — instead the bank would automatically lengthen the duration of mortgage and loan periods to account for the higher interest rate being paid.

In a statement this morning, HSBC Bermuda said: “HSBC Bermuda assesses a range of macroeconomic and other factors in determining the bank’s base lending rates.

“The US Federal Funds Rate is an important one of those factors. Following the 25 basis-point increase announced yesterday, HSBC has determined at this time to leave its base lending rates for customers unchanged.

“We will continue to monitor the US Fed Funds Rate and other factors and respond as appropriate.”