More banks seen joining rate cuts
| New York
Chemical Bank, the nation's sixth-largest commercial bank, cut its prime rate Monday to 19 percent from 20 percent after a large drop in the nation's money supply. Only one major bank, Marine Midland, cut its corporate loan rate last week a by half point from the prevailing 20 percent rate.
But analysts say that the Federal Reserve's report late Friday that the money supply had dropped $2.9 billion in the latest week, lower inflation figures, an a sluggish economy will ease some of the pressures in the credit markets and lead to further rate declines at major banks.