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The bank left its main lending rate at 5 percent.
The base lending rate was at 7.5 percent in June.
The base lending rate in Britain is now 5.5 percent.
Their rates are usually 1 to 2 points above the prime lending rate.
Foreign currency lending rates are now set by the central bank.
The prime lending rate in Canada is two points lower, at 7.5 percent.
But only one major bank, Chemical, cut its prime lending rate.
Some reports said overnight lending rates had reached 75 percent.
It was the first cut in the closely watched lending rate since July.
The banks' prime lending rate is currently 7 1/2 percent.
The basic overnight lending rate was 6 9/16 percent before and after the Fed's action.
Japan's key lending rate is at a record low, one-half of 1 percent.
Indeed, several major banks raised their prime lending rates half a point, to 8 3/4 percent.
On Friday, many big banks cut their prime lending rates to 6 1/2 percent.
The central bank's overnight lending rate is already at a four-year high of 25.5 percent.
Interest rate cuts to lower lending rates and stimulate the economy.
Commercial bank prime lending rate in 2009: ranked 183 out of 187 countries.
One was the rise in the base lending rate of large British commercial banks by a half point, to 8 percent.
There now exists a potential for a cut in the prime lending rate by the major banks.
Banks immediately said today that they would raise their prime lending rates.
This, in turn, would almost certainly drive down the banks' prime lending rate, stuck at 6 percent since early summer.
That set off increases in other interest rates, including the prime lending rate by banks.
At the same time, the French left their basic lending rate at 5 percent.
The Japanese yen suffered despite an increase in a key lending rate.
The loan is currently six percentage points above the prime lending rate, he said.