Interest Rate Update (November 2016)

The following graph shows movements in both the 3 month and 3 year Bank Bill yield rates, for the period January 2006 to date.

These rates are wholesale rates which are net of any margin charged by financial institutions. Rates have been on a gradual decline since early 2011.

Currently the 3 month wholesale Bill rate is 1.76% pa and the 3 year wholesale Bill rate is 1.84% pa, a premium of 0.08% pa or 8 basis points for the longer term. This low premium for the longer term rate suggests that interest rates are likely to remain stable in the short to medium term.