Reserve Bank finds lending rates more competitive
Deposit rates, which improved during the pandemic, narrow to pre-Covid levels
28 June 2024 - 05:00
Interest rates are high, but borrowers can take comfort from banks not adding as much of a margin to the Reserve Bank’s repo rate as they were at the peak of the pandemic four years ago.
A study in the Reserve Bank’s latest quarterly bulletin shows that private sector banks improved margins at which they lend to customers over the past three years, narrowing the gap between interest rates they charge and the benchmark repo rate, as they responded to competitive pressures while steering clear of high-risk borrowers...
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