BAC · News · 20260916N
Interest Rate Outlook
BANK OF AMERICA CORP /DE/ · 2026-09-16 · Importance 63 · Surprise 50 · In source text
The Federal Reserve reportedly raised its benchmark interest rate by 25 basis points, its first increase since 2023. Major U.S. banks, including Bank of America, raised prime lending rates from 6.75% to 7% effective Thursday, increasing borrowing costs for consumers and businesses. Bank of America reportedly has $2.2 billion of net interest income exposure to potential rate cuts, while higher rates could support earnings but slow loan demand and economic activity.
Key facts
- Several major U.S. banks, including Bank of America, are increasing their prime lending rate from 6.75% to 7% starting Thursday after the Fed raised its benchmark by a quarter percentage point. source
- Bank of America's stock fell 1.4% after the CEO projected the third-quarter investment-banking fees guidance. source
- Bank of America's shares were trading 8.31% above its GuruFocus GF Value estimate. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| revenue | positive | probable | — | Several major U.S. banks, including Bank of America, are increasing their prime lending rate from 6.75% to 7% starting Thursday after the… |