Banks begin to raise rates following Fed move

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Let the rate-rise procession begin!

Following the Federal Reserve’s move to raise its federal funds rate, large lenders have followed suit, increasing their benchmark rates.

The Wall Street Journal “prime rate”, the level that commercial lenders charge their most credit-worthy customers, has sat at 3.75 per cent since the December Federal Reserve rate increase. But within an hour of the Fed’s March rate increase, lenders have begun to increase their own base rates to 4 per cent.

While most consumers and businesses pay rates above the prime rate, it serves as a benchmark for many varieties of loans, including credit cards and certain mortgages.

The list of lenders increasing their base rate by 0.25 percentage points to 4 per cent includes:

-Wells Fargo

-Citigroup

-M&T Bank

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