(Reuters) – Germany’s Deutsche Bank AG said on Thursday its U.S. affiliate had increased its prime lending rate by 25 basis points, mirroring moves by major Wall Street banks after the Federal Reserve announced the first of what is expected to be a series of rate hikes.
The Deutsche Bank Trust Company Americas (DBTCA) increased the rate to 3.50% from 3.25%, effective Thursday, the bank said.
On Wednesday, Citigroup Inc, Wells Fargo & Co, JPMorgan Chase & Co and Bank of America Corp each lifted their base rates to 3.5% from 3.25%.
The U.S. central bank, looking to counter economic risks posed by excessive inflation, raised its benchmark rate by a quarter of a percentage point on Wednesday.
Banks, which make money on the difference between what they earn from lending and pay out on deposits and other funds, typically thrive in a high interest rate environment.
(Reporting by Niket Nishant in Bengaluru; Editing by Tim Ahmann)