Rural Bank Cuts Interest Rates for Lending by 0.25%

3 January, 2012

Rural Bank has announced today it will lower interest rates for variable rate lending by 0.25% following the Reserve Bank of Australia’s decision in December to reduce the official cash rate.

Rural Bank’s Chief Executive officer, Paul Hutchinson said, “In making this decision we have had to carefully consider our customers, rural community needs and the economic environment we currently operate within”.

“With global uncertainty and increasing funding costs our decision to lower our rates is representative of our commitment to our lending customers”.

Mr Hutchinson said, “the November and December reduction in interest rates is further good news for agribusiness”.

“The farm sector is expected to continue to benefit over the medium term from the continuing growth in incomes in Asia notwithstanding uncertainties currently existing for the global economy.”

“The downward trend for global food prices appears to have ended, reflected by a marked shift in demand supply balances, with demand increasing due to the positive effects on consumption that occurs with rising incomes in Asia.”

Mr Hutchinson said, “The outlook for grains is one of the strongest and we are seeing excellent growing conditions for livestock across most locations. All this, along with the reduction in lending rates will assist our lending customers with their businesses.”

Rural Bank’s rate reduction will be effective from 16 January 2012.

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