BofA, KeyCorp lower prime rate

Bank of America Corp. and KeyCorp have lowered their prime-lending rates to 5 percent from 5.25 percent.

The move follows the Federal Reserve's decision Wednesday to cut the federal funds rate to 2 percent from 2.25 percent.

"The substantial easing of monetary policy to date, combined with ongoing measures to foster market liquidity, should help to promote moderate growth over time and to mitigate risks to economic activity," the Federal Open Market Committee said in a written statement. "The committee will continue to monitor economic and financial developments and will act as needed to promote sustainable economic growth and price stability."

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Banks use the federal funds rate to determine the interest they charge on overnight loans to each other.

Bank of America (NYSE: BAC), which is based in Charlotte, N.C., has 85 branches in Oregon. Cleveland, Ohio-based KeyCorp (NYSE: KEY) has 69 KeyBank branches in Oregon.