Westpac Deposit Rates fall further

Westpac reduces its deposit rates with effect from today, 19 April 2007. Term deposits from 9 months up to 3 years now accrue a flat interest rate of 4.25%. The bank's rates which were last posted on this blog on 3 April 2007 fell as follows :

• 6 to less than 9 months - fell to 4.25% from 4.60%;
• 9 months to less than 1 year - remains at 4.25%;
• 1 year to less than 1.5 Years - fell to 4.25% from 5.45%;
• 1.5 years to less than 2 Years - fell to 4.25% from 6.00%; and
• 2 years to less than 3 Years - fell to 4.25% from 4.50%.

This can be attributed to there being more liquid funds available in the banking system. More liquidity in the banking system is expected as the statutory reserve deposits that banks are required to hold with the Reserve Bank of Fiji, falls from 7% (of a bank's deposit and borrowing liabilities) to 6% from 1 May 2007.

We should expect lending rates to reduce over the next few months.