Citibank has lowered its base lending rate by 0.25% on Oct. 30, 2025, from 7.25% to 7.00%, according to a Citibank news release. This follows a similar reduction in September, the bank announced, and comes a day after the U.S. Federal Reserve lowered its policy rate to a 3.75%–4.00% range, the lowest in three years, CNN reports.
Borrowers with floating-rate loans tied to Citibank’s base rate may see lower interest payments, potentially saving hundreds of dollars annually, according to The Economic Times. The cut aligns the bank’s lending rate with the U.S. prime rate, standardizing borrowing costs for individuals and businesses. Loans such as mortgages, auto financing, and business credit lines tied to the base rate will see immediate changes in monthly payments.
Citigroup, Citibank’s parent company, operates in more than 180 countries, offering personal banking, wealth management, and capital markets services, the outlet notes.
Citi has a market capitalization of $177.36 billion, which places the bank as a major global player, reports The Economic Times. Already analysts in India, per Azat TV, note that its local banks have begun trimming loan rates amid cooling inflation and a stable economic outlook. These developments reflect global trends, further suggesting that central bank decisions abroad may continue to influence lending practices and borrowing costs in other markets.
On the stock side, Citigroup’s shares fell 2.2% on the day of the announcement, closing near $99, although they remain more than 30% higher year-to-date, Azat TV reports. The stock currently trades with a price-to-earnings ratio of 13.92 and a price-to-sales ratio of 2.23, both almost historical highs. Analysts remain cautiously optimistic, with a target price around $112.73, as reported by The Economic Times. Institutional investors hold roughly 78% of the company’s shares, reflecting continued confidence in Citigroup’s long-term prospects. The bank’s beta of 1.44 indicates that its stock may experience greater volatility than the broader market.
Federal Reserve officials have emphasized that future rate decisions will depend on indicators such as inflation and labor market trends, Azat TV notes. Citibank’s rate cut offers relief to borrowers with floating-rate loans, though broader conditions and policy choices will continue to shape lending costs and financial activity in the months ahead.
