OCR cut passed in full to households + businesses

MEDIA RELEASE
For release: Thursday 12 March 09

ANZ and The National Bank reduce lending rates for farmers, businesses and households

ANZ and The National Bank today announced across the board cuts to its lending rates for businesses, farmers and households in response to the Reserve Bank of New Zealand’s 0.50% reduction in the Official Cash Rate.

The Standard Variable Rate will be reduced by 0.50% to 6.45 % (from 6.95%) which will benefit many of ANZ and The National Bank’s household and small business customers.

For homeowners looking for shorter fixed term options, ANZ is offering a 3 month fixed rate of 5.65%.

The National Bank is offering a 6 month fixed term rate to 5.79%.

The OCR decrease has also been passed on in full to business customers with Business overdraft rates for ANZ and The National Bank dropping by 0.50%.

The variable lending rate for Rural customers will also be reduced by the full 0.50%.

Says ANZ National CEO Graham Hodges, “the conditions in the wholesale money markets remain challenging resulting in significantly increased funding costs for banks and we are no different. However we also appreciate that New Zealand households, farmers and business owners are facing similar challenges as a result of the current market downturn.”

“As well as reducing lending rates we’re commited to keeping capital flowing through the business and rural sector.”

ANZ National supports over 120,000 small to medium enterprises and rural businesses in New Zealand with an overall portfolio of over NZ$40 billion.

Last month ANZ National committed over $ 4 billion in new lending to farms and businesses for the year ahead.

ENDS

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