Rabobank New Zealand has announced it will reduce the variable base rate on its rural loans by 0.5%.
Rabobank New Zealand CEO Todd Charteris said the bank had undertaken a review of overall funding costs following yesterday’s Reserve Bank of New Zealand decision to cut the official cash rate (OCR) by 0.5% to 4.25%.
“We have carefully reviewed our position and are pleased to be able to pass on the full 0.5% rate reduction to our New Zealand food and agribusiness lending clients at this time,” he said.
“This variable rate reduction will be effective from Monday, December 2, 2024.”
Rabobank New Zealand CEO, Todd Charteris
Mr Charteris said Rabobank’s fixed rates within its All-In-One loan facility have already reflected daily changes in wholesale markets that had priced in the expected cuts to the OCR within the last month.
“The bank’s All-In-One loan facility provides clients with the ability to fix rates online on any portion of their loan for 30 days to 5 years providing them with greater control over their interest costs. This account feature is particularly beneficial for our clients in the current environment given the significant movement in interest rates across recent months,” he said.
“Off the back off these lower interest rates and improved agri commodity pricing, the mood across the agri sector has lifted considerably since the middle of the year and it’s great to see industry sentiment on the up as we move towards the Christmas and New Year period.”