Bank of America cuts prime rate

NEW YORK (Reuters) - Bank of America Corp on Tuesday cut its prime rate -- a borrowing rate that banks charge their best customers -- to 6.50 percent from 7.25 percent.

Other banks are expected to make identical cuts.

The decrease came after the Federal Open Market Committee, the policymaking body of the U.S. Federal Reserve, lowered its key overnight rate on loans between banks by three-quarters of a percentage point to 3.50 percent.

Most lending institutions use the overnight rate, known as the federal funds rate, as a benchmark for what they charge consumers for everything from credit cards to home loans.

(Reporting by Jonathan Stempel; Editing by Maureen Bavdek)