Hawai'i's two largest banks yesterday lowered their prime lending rate one-quarter of a percentage point in response to the Federal Reserve's lowering of the federal funds rate.

Bank of Hawaii announced it was lowering its base lending rate to 7.5 percent from 7.75 percent effective today. The base lending rate is what the bank generally offers to its best customers.

Also, First Hawaiian Bank lowered its prime lending rate to 7.5 percent. The rate is a benchmark for interest rates on many types of loans.