Wednesday, 27 November 2024 15:18

Relief for farmers on floating interest rate

Written by Sudesh Kissun

font size decrease font size increase font size
Print
Email

Lorraine Mapu, ANZ managing director for business and agri.

ANZ says the latest cut to its floating rates will be welcome news to many of its business and agri customers still feeling the effects of high inflation and interest rates.

ANZ NZ managing director for business and agri, Lorraine Mapu says most business and agri customers are on floating rates so changes should flow to them “fairly quickly”.

Following the Reserve Bank’s decision to cut the official cash rate (OCR) by 50 basis points this morning, ANZ cut its business floating rates a further 40-basis points, resulting in a total 55-basis point cut for the month after the bank earlier trimmed rates by 15-basis points.

“Since rates started to drop – both wholesale and the OCR – we’ve announced 135-basis points in cuts to our business and agri customers,” says Mapu. In that time, the OCR has fallen by 125-basis points.

Mapu says most of ANZ NZ’s business and agri customers were on floating rates so the changes should flow through to them relatively quickly, giving some debt relief and helping with cashflow.

More like this

2024-25 season shaping up to be 'a cracker'

ANZ agricultural economist Susan Kilsby is describing the 2024-25 dairy season as ‘a cracker’.

ANZ defends farm lending rates

The country's largest lender to the agriculture sector says it's not favouring home loans over farm and business lending.

Too little, too late

OPINION: Economists, in their usual excitable tones, have, for a while now, been openly questioning the Reserve Bank’s glacially slow reaction to the recessionary economic conditions we’re all drowning in.

Better looking season!

Falling interest rates, combined with a rising forecast milk price, mean this season’s looking a lot better than the previous one, says Federated Farmers dairy section chair Richard McIntyre.

Rabobank cuts loan rate

Rabobank New Zealand will reduce the variable base rate on its rural loans by 0.5%, effective from 16 October 2024.

Featured

No bird flu on second farm

Biosecurity New Zealand says test results to date from a small free-range layer chicken farm near Dunedin are negative for avian influenza.

2024-25 season shaping up to be 'a cracker'

ANZ agricultural economist Susan Kilsby is describing the 2024-25 dairy season as ‘a cracker’.

Keeping sheep under shade, shelter as climate changes

How much shade and shelter do our sheep need in an era of more extreme weather and the lack of natural shelter on farms?

Fonterra unveils healthy first quarter profit

Fonterra has unveiled a net profit of $263 million for the first quarter of its 2024-25 financial year.

No disease on other Mainland Poultry farms

Biosecurity New Zealand has reported no signs of disease on other chicken farms operated by Mainland Poultry in Otago, however testing and monitoring work continues.