Australian prime rates increased

Press, 18 December 1985, Page 38

Australian prime rates increased

NZPA-AAP Sydney Australian prime lending rates today continued their record breaking climb with the Westpac Banking Corporation announcing that its Crime rate for corporate orrowers would rise to 21 per cent from 19.75 per cent tomorrow. Westpac’s new rate, which represents the highest ever interest rate charged by an Australian bank to corporate clients borrowing $lOO,OOO or more, beats the 20 per cent announced last Friday by the National Australia Bank. The National announced its bench-mark rate for loans of $lOO,OOO or more would rise to 20.25 per cent, effective last Monday, because of the continuing high cost of funds on the money market owing to the Federal Government’s tight monetary policy.

Citibank Australia, Ltd, which opened its doors as a trading bank last week, announced an inaugural prime rate of 20.00 per cent. The Australian Bank also lifted its prime rate to 20.25 per cent on Monday. Westpac also said it would lift its general finance base rate on loans of under $lOO,OOO by one percentage point to 17.75 per cent from tomorrow. The bank’s variable personal loan rate was also increased to 18.5 per cent from 17.5 per cent. As well, the fixed personal loan rate on new loans will be increased by one percentage point to a maximum annual rate of 19.00 per cent, effective from January 2. The Westpac managing director, Mr Bob White, said the movements reflected the impact of rising deposit rates.