U.S. effective fed funds rate hits lowest since September

NEW YORK (Reuters) - The average cost for U.S. banks to borrow reserves from each other overnight fell to its lowest in over 10 months on Thursday, a day after the Federal Reserve cut interest rates for the first time since 2008, New York Federal Reserve data released on Friday showed.

The effective or average interest rate to borrow reserves in the federal funds market fell to 2.14% from 2.40% on Wednesday. Thursday's level was the lowest since 1.93% on Sept. 26.

(Reporting by Richard Leong; Editing by Bernadette Baum)

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