More banks raise prime rate to 20 1/2

July 9, 1981

Citibank, the nation's second-largest bank, raised its prime rate to 20 1/2 percent, from 20 percent, in response to a lack of any signal that the Federal Reserve is easing the cost of short-term money. Several other banks followed suit. Chase Manhattan Bank and First National Bank of Chicago to ok similar action last week.