Pressure on interest rates continues
Wellington reporter Further pressure was put on interest rates yesterday when two more institutions announced cuts.
The Development Finance Corporation cut its interest rates on commercial loans with a new base rate of 17.25 per cent. The latest cut is the corporation’s fourth since March, when the base rate was 21.5 per cent. “This more than 4 per cent drop is attributable to the easing of interest rates in the domestic capital markets,” said the general manger, Mr Murray Smith.
Existing loans will be repriced by the corporation at the new rates as
they come up for review. In view of the falling interest rate regime the corporation has closed its Income Bond and Redeemable Bond Investment issues. Mr Smith said the retail market weas being closely monitored and further development of the corporation’s personal investment options was being considered.
The Post Office Savings Bank cut its deposit rates 1 per cent. Its top rate of 17 per cent has been reduced to 16 per cent and other rates have also been reduced in line with general trends in the financial markets.
The new rates applied from yesterday.
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Press, 13 June 1986, Page 2
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193Pressure on interest rates continues Press, 13 June 1986, Page 2
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