Increase in bank lending rates

Two major banks in the country will be increasing their interest rates beginning this week, 20 Feb 2009. The interest rate increase has been blamed on the sustained increase in deposit rates and the high demand for a reducing pool of funds available for lending or system liquidity. Consider this, Fiji’s liquidity has reduced from highs of $300m 18 months ago to an average of less than $50m in recent months.

• ANZ – 0.5% increase in variable interest effective as of 20 Feb 2009.
• Westpac – 0.25% increase in variable interest effective on 25 Feb 2009 and a further increase of 0.25% effective on 23 Mar 2009.

Old vs new lending rates (%) for ANZ:

• Business index rate: 10.25 vs 10.075
• Home loan: 9.50 vs 10.00
• Investment loan: 9.50 vs 10.00
• Personal loan: 11.50 vs 12.00 (secured); 14.20 vs 14.70 (unsecured)
• Rural banking micro loan: 19.00 vs 19.50
• Small loan: 19.00 vs 19.50 (unsecured)

Old vs new lending rates (%) for Westpac:

• Business lending loan: 9.99 vs 10.24 (effective 25 Feb)vs 10.49 (effective 23 Mar)
• Residential property loan: 9.50 vs 9.75 (effective 25 Feb) vs 10.00 ( effective 23 Mar)
• Investment loan: 9.50 vs 9.75 (effective 25 Feb) vs 10.00 (effective 23 Mar)