Interest Rate Update (July 2018)

The following graph shows movements in both the 6 month and 3 year Bank Bill yield rates, for the period January 2006 to June 2018. These rates are wholesale rates which are net of any margin charged by financial institutions.

Currently the 6 month wholesale Bill rate is 2.04% pa and the 3 year wholesale Bill rate is 2.17% pa, a premium of 0.13% pa or 13 basis points for the longer term.  The premium for the forward rate suggests that rates are more likely to rise than fall in the medium term, although they may well remain stable at current levels.