Southwest Bank Of Saint Louis

Southwest Bank said Friday that it will lower its prime lending rate, but analysts don't expect other banks to follow suit until the Federal Reserve cuts interest rates again. Southwest said it will cut its prime rate a quarter percentage point to 7.75%, effective Monday. It becomes the second regional bank to reduce the key rate from the 8% level that has prevailed since Sept. 13. First Fidelity Bancorporation of Lawrenceville, N.J., cut its prime rate Wednesday to 7.75%.

Southwest Bank said Friday that it will lower its prime lending rate, but analysts don't expect other banks to follow suit until the Federal Reserve cuts interest rates again. Southwest said it will cut its prime rate a quarter percentage point to 7.75%, effective Monday. It becomes the second regional bank to reduce the key rate from the 8% level that has prevailed since Sept. 13. First Fidelity Bancorporation of Lawrenceville, N.J., cut its prime rate Wednesday to 7.75%.

Trend-setting Southwest Bank of St. Louis on Wednesday reduced its prime lending rate to 10% from 10.5%, acting fast after signs this week that the Federal Reserve has eased credit to keep the economy from sliding into a recession. Other banks are expected to follow suit, economists said, viewing Southwest Bank's move as a logical response to recent behind-the-scenes Fed actions to push interest rates lower.

Trend-setting Southwest Bank of St. Louis on Wednesday reduced its prime lending rate to 10% from 10.5%, acting fast after signs this week that the Federal Reserve has eased credit to keep the economy from sliding into a recession. Other banks are expected to follow suit, economists said, viewing Southwest Bank's move as a logical response to recent behind-the-scenes Fed actions to push interest rates lower.