🏦 Cayman Islands banks lower interest rates following US Federal Reserve's decision

Following the US Federal Reserve's announcement of a 0.5% interest rate cut, some banks in the Cayman Islands have mirrored this move by reducing their prime lending rates by the same amount. Butterfield, Cayman National and Proven Bank have all announced that their CI$ and US$ prime lending rates are decreasing from 8.50% to 8.00%. This move by local high street lenders is aimed at helping borrowers make ends meet, especially in the wake of the inflation surge triggered by the COVID-19 pandemic in 2020. 🏦

The US Federal Reserve's interest rate cut, the first in four years, was designed to maintain the strength of the US economy. Federal Reserve Chair Jerome Powell stated that the decision would support the economy and labour market, enabling further progress on inflation as the US moves towards a more neutral stance. This marks the start of a monetary-easing cycle and a bet on the continued fall of inflation in the United States. Despite these changes, Powell maintains that the likelihood of a recession remains low. 📉