Borrowers will be hit for the fourth time in a year in March as Clarien Bank joined Butterfield Bank in announcing today that it will raise its lending rates.

Clarien said it will raise its Bermuda dollar base lending rate for the fourth time since last April.

Effective March 1, it will be adjusting its Bermuda dollar base lending rate by 50 basis points (0.50 per cent) and the USD Prime base lending rate by 75 basis points (0.75 per cent) after the US Federal Reserve rate increase on February 1.

Bermuda dollar personal loans and mortgages, and overdrafts, will increase from 5.5 per cent to 6 per cent, while Bermuda dollar commercial loans and mortgages, and overdrafts, will increase from 5.75 per cent to 6.25 per cent.

United States prime personal and commercial loans and mortgages will increase from 6.25 per cent to 7 per cent. Cash secured personal lending in US and Bermuda dollars will increase from 6 per cent to 6.5 per cent.

Butterfield Bank raised its interest rates on loans and mortgages by 0.25 per cent on February 2.

The last change for Clarien was on December 1, when it also adjusted its Bermuda dollar base lending rate by 50 basis points (0.5 per cent) and US dollar lending rate by 75 basis points (0.75 per cent), after the US Federal Reserve rate increase on September 21.

Earlier this month, the Fed said it had turned a key corner in the fight against high inflation, but that there was still a requirement that rates remain elevated at least through the end of this year.