14 April 2005
First National Bank (FNB) today announced the reduction of its prime lending rate by 0.5% from 11.0% to 10.5%. The new rate will take effect on Monday 18 April 2005 on all prime rate linked products.
Interest rates for new and existing FNB HomeLoans will also be reduced by 0.5% on Monday 18 April.
“The cut is a vote of confidence in our stability and growth sustainability,” says FNB CEO Michael Jordaan. “It is good news for all South Africans. Rates were last at these levels in February 1981 when prime was 10.75%, exactly 24 years ago. Prior to this, the all-time low was 10% in July 1974.”
“Unlike the volatile boom-and-crash conditions of the mid-70′s and early 80′s, the economy has now entered a golden era of low inflation with sustained growth and new jobs,” adds Jordaan.
The bank noted that consumers remained disciplined when taking credit for purchases and that while credit use had increased during the past 12 months, indebtedness remained at moderate levels.
“Lower inflation means lower annual salary adjustments and an effective increase in the real rate of interest. We are seeing maturity in consumer’s borrowing decisions,” says Jordaan.
First National Bank is a division of FirstRand Bank Limited.
An Authorised Financial Services Provider.
Prepared by:
FNB Brand Communication Services
Steve Higgins
011 371 2854
083 288 5022
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