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Westpac raises rates

PA Wellington Keen competition for funds lies behind increased borrowing rates announced yesterday by Westpac Merchant Finance, Ltd. Westpac Merchant now has a top rate of 18 per cent for seven months and 15 months. The company’s general manager, treasury, Mr Ken Littlejohn, said: “The main reason for shifting our rates up is that the competition for funds is becoming jceener and is going to remain so for the next few months with the Government’s re-entry into the market later this month with a very heavy borrowing programme to fund the on-going budget deficit. “The law of supply and demand will keep interest rates up until such , time as the Government deficit is reduced, and the demand for funds from the nonGovernment sector abates. “Until this happens it’s good news for those with money to invest, not very good for those borrowing money, and not so good for the average man in the street where the cost of borrowing, both Government and non-Government, inevitably ends up.”

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Permanent link to this item

https://paperspast.natlib.govt.nz/newspapers/CHP19850402.2.152.5

Bibliographic details

Press, 2 April 1985, Page 34

Word Count
169

Westpac raises rates Press, 2 April 1985, Page 34

Westpac raises rates Press, 2 April 1985, Page 34