BNZ announced it had cut its agribusiness overdraft and business overdraft and variable rates by the full 50 basis points seen in the Official Cash Rate cut this morning by the Reserve Bank of New Zealand. New Zealand banks have been under pressure lately, notably from Federated Farmers, because they had not passed on cuts in the OCR to business lending rates as much as they had to mortgage rates. "Matching today's OCR cut signals our continued support for our client base through what are clearly challenging times," BNZ Partners General Manager Craig Haycock said. In related news, following the Reserve Bank's announcement this morning, Federated Farmers put out a release, again criticising banks for not passing on OCR cuts to business lending rates as much as it thought they should have. "Another issue that needs tackling is the delivery of interest rate cuts to businesses," Federated Farmers President Don Nicolson said. "The latest survey by Federated Farmers showed that after two cuts totalling 300 basis points, only 156 basis points had been passed onto farm business overdraft facilities," he said. "Given all New Zealanders depend upon agriculture in some way, the banks need to be more transparent and open about the way farm business debt facilities are being structured," he said.
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