Relief for farmers on floating interest rate

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.