Feds’ concern over interest rates a topic for bank inquiry

Contact between Federated Farmers and banks over high interest rates for farm lending is welcome, and farmers should bring their concerns to the multi-party inquiry, Opposition agriculture spokesperson Jim Anderton says.

Federated farmers says its economists calculate that floating rates account for about $6.6 billion of the $45 billion of rural debt and “floating mortgage rates are higher than they could be.”

Three parliamentary parties, Labour, Greens and the progressives are holding an inquiry on the topic and Jim Anderton wants banks to front up and answer farmers’ concerns.

“Banks need to explain why their interest rates haven’t come down as fast as the Reserve Bank has been bringing down the official cash rate that banks pay the Reserve Bank for their deposits. Not even the Governor of the Reserve bank can understand why they are not reducing their rates.

“Farmers are the backbone of the economy, and the pressure high interest rates are causing farmers is pressure on New Zealand’s entire economic development.”

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