The Bank of N.T. Butterfield & Son Limited announced it will not increase interest rates in response to yesterday’s 25 basis point increase in the US Federal Funds Rate.

The base rate for Bermuda dollar residential mortgages, consumer loans, corporate loans and US dollar loans all remain unchanged, Butterfield said in a statement after the market close.

The Federal reserve statement midafternoon said: “Indicators of economic activity and employment have continued to strengthen. Job gains have been strong in recent months and the unemployment rate has declined substantially. Inflation remains elevated, reflecting supply and demand imbalances related to the pandemic, higher energy prices and broader price pressures.

“The invasion of Ukraine by Russia is causing tremendous human and economic hardship. The implications for the US economy are highly uncertain but in the near term the invasion and related events are likely to create additional upward pressure on inflation and weigh on economic activity.

“The committee seeks to achieve maximum employment and inflation at the rate of two per cent over the longer run. With appropriate firming in the stance of monetary policy, the committee expects inflation to return to its two per cent objective and the labour market to remain strong.

“In support of these goals, the committee decided to raise the target range for the federal funds rate to 1/4 to 1/2 per cent and anticipates that ongoing increases in the target range will be appropriate.

“In addition, the committee expects to begin reducing its holdings of Treasury securities and agency debt and agency mortgage-backed securities at a coming meeting.

“In assessing the appropriate stance of monetary policy, the committee will continue to monitor the implications of incoming information for the economic outlook.

“The committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the committee's goals.

“The committee's assessments will take into account a wide range of information, including readings on public health, labour market conditions, inflation pressures and inflation expectations, and financial and international developments.

“Voting for the monetary policy action were Jerome H. Powell, chair; John C. Williams, vice chair; Michelle W. Bowman; Lael Brainard; Esther L. George; Patrick Harker; Loretta J. Mester; and Christopher J. Waller.

“Voting against this action was James Bullard, who preferred at this meeting to raise the target range for the federal funds rate by 0.5 percentage point to 1/2 to 3/4 per cent. Patrick Harker voted as an alternate member at this meeting.”