Rabobank: variable base rate on rural loans cut

Media Release April 30, 2009 1

Rabobank New Zealand announces 0.5% reduction in variable base rate on rural loans

Rabobank New Zealand has announced it will lower the variable base rate on its rural loans by 0.5% per annum, effective May 15, 2009.

Rabobank general manager Rural New Zealand Ben Russell said the bank was pleased to again be in a position to pass on the full 0.5% official cash rate reduction to its variable rate clients, following the Reserve Bank of New Zealand’s decision today to reduce the official cash rate.

“Variable interest rates for Rabobank clients have now fallen by more than 4% since rates peaked in early 2008,” Mr Russell said.

“These remain challenging times for the rural sector in New Zealand and further interest rate reductions will assist farmers in a year where cash flows in many sectors are very tight.”

Rabobank was founded as a farmers’ cooperative more than 110 years ago and is still structured and run as a cooperative. Rabobank operates in 43 countries.

ENDS

© Scoop Media