ST. LOUIS (KMOX) – As the third quarter of 2017 gets underway, brace yourself for another bump in the prime interest rate.

That’s according to Rick Bagy president of Central Bank of St. Louis.

“I do believe that the fed will raise rates again, only because they’re doing so much talking about it that it would almost be admitting they were wrong if they didn’t raise rates,” he says.

The Wall Street Journal’s prime rate was raised to 4-and-a-quarter percent last month. Bagy says another quarter-percent increase could be looming.

He adds that the good news for St. Louis is that inflation and unemployment rates remain fairly low and the building market is on the upswing.

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