A matter of interest

Published: 8:39PM Tuesday February 24, 2009 Source: Close Up

The most celebrated example of the Australians playing dirty against us Kiwis is the infamous underarm bowling incident of 1981.

Now in 2009 there is apparently another example, but this time in business.

Kiwi businesses say the interest rates they are being charged by Aussie banks are unfair.

So what's the issue?

Well after a series of cuts to the Official Cash Rate both here and across the Tasman it seems we are out of sync.

In Australia, banks have passed on bigger interest rate cuts to their own businesses, than have been passed on to Kiwi businesses.

In fact our business loan rates have dropped by less than .5%, compared to Australia's 1.5%.

Reporter Matt Chisholm has the details, then we discuss why.

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