A cut in the prime rate hints latest peak is past
Chase Manhattan Bank cut its prime lending rate half a percentage point, to 20 percent, the first major indication that interest rates may have passed another peak. Other major banks were expected to follow.Skip to next paragraph
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The prime rate, which banks charge their most creditworthy corporate customers, peaked last December at 21 1/2 percent. If fell to 17 percent in April before climbing back up under pressures from heavy loan demand and the Federal Reserve's tight-money policy, caused by large inscreases in the money supply.