Updated at 1:22 p.m., Wednesday, January 30, 2008
Hawaii banks cut prime rate following Fed's rate cut
Advertiser Staff
Bank of Hawaii, American Savings Bank and Central Pacific Bank said today they are cutting their prime rates to 6 percent from 6.5 percent following the Federal Reserve's move earlier in the day to cut a key lending rate.The banks said the reductions in their base lending rate will be effective tomorrow.
The Federal Reserve cut the federal funds rate by a half-percentage point to the lowest level in two-and-a-half years and suggested more rate cuts could be on the way to support the rapidly slowing economy.
The Fed cut its target for short-term interest rates to 3 percent, the lowest since June 2005. The move, when combined with a dramatic three-quarter point cut last week, marked the most aggressive action by the Fed in decades.
