Colonial to reduce interest rates further

Colonial National Bank will be reducing its interest rates further with effect from 22 October 2007.

The reduction will see the 12 month fixed rate for home loans fall to 8.5% from 9%. The variable rate on home loans will fall to 10.5% from 11%.

The Business Banking base rate will reduce to 10.2% from 10.7%.

The reduction in interest rates have been brought about by an increase in the bank's liquidity position over recent months.