Business lending rates reach 33-year highs

Business lending rates reach 33-year highs
RBNZ governor Adrian Orr has defended bank capital requirements, saying they are not dampening competition. (Image: Mark Mitchell)
Gregor Thompson
Business lending rates are higher now than at any time since 1991.The Reserve Bank of New Zealand’s (RBNZ) preferred measurement, the small to medium-sized enterprise (SME) overdraft rate, formerly called the business base lending rate (BBLR), currently stands at 12.7%, which represents the base interest rate for new overdraft loans for non-farm SMEs.One medium-sized business owner, who wished to remain anonymous, told BusinessDesk his “overdraft rate is equivalent to 14% and [his] term loans are more or less 10% ... and then there...

More Economy

RBNZ 25bps rate cut wasn't unanimous
Economy

RBNZ 25bps rate cut wasn't unanimous

The vote was 5 to 1 to cut by 25 basis points. 

Rebecca Howard 28 May 2025
RBNZ cuts, signals more to come
Economy

RBNZ cuts, signals more to come

Risks around the economic outlook are heightened. 

Rebecca Howard 28 May 2025
Not everyone thinks the RBNZ should cut this week
Economy

Not everyone thinks the RBNZ should cut this week

Three out of five members of NZIER's Shadow Board recommend a hold. 

Rebecca Howard 26 May 2025
Downturn dims luxury's lustre
Retail

Downturn dims luxury's lustre

Louis Vuitton NZ's revenue dropped 10.7% to $82.2 million year on year.

Gregor Thompson 26 May 2025