JPMorgan, Citigroup to hike prime rate by 75 bps mirroring Fed’s move

(Reuters) – Major U.S. banks JPMorgan Chase & Co and Citigroup Inc said on Wednesday they will hike their prime lending rates by 75 basis points, bringing the rates to their highest since the global financial crisis of 2008.

The move follows a similar hefty hike by the Federal Reserve as the central bank attempts to tame stubbornly high inflation in the United States.

Hopes of a soft landing have waned in recent months as the Fed remains steadfast in its decision to keep raising rates until data shows a sustained pullback in consumer prices.

The new rates would take effect on Thursday, both the banks said.

(Reporting by Niket Nishant and Mehnaz Yasmin in Bengaluru; Editing by Shinjini Ganguli)