FNB offers relief in line with rate cut

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Mongezi Mtati

First National Bank (FNB) will cut its prime lending rate by 100 basis points from 15% to 14%. The new interest rate will be applicable to all new and existing prime-linked loans, including home loans, from Monday 9 February 2009.

“The full 100-point cut marks a dramatic break in the MPC's long-standing approach and indicates two important changes in our financial environment. One, this round of the inflation battle appears to have been won after unwavering vigilance by the monetary authorities - since August 2006. Two, slowing economic activity and falling confidence can now be addressed in the space created by falling inflation,” says Michael Jordaan, CEO of FNB.

“Consumer and business confidence has been tracking lower for several months; today's 1% cut will have a positive impact on how people view their finances. While we do not see an early turn-around, we look forward to a period of greater stability and a return to improved conditions in 2010.

“We welcome the bold move taken by the Reserve Bank and urge our customers to take this opportunity to gather their breath and improve their overall liquidity,” says Jordaan.

FNB's Investment Product House conducts weekly rates review meetings at which rates earned in investments are reviewed independently of the SARB's MPC announcements. Revised rates are communicated via rates boards in branches and on FNB's web site, www.fnb.co.za.

Useful personal banking contacts:

FNB Telephone Banking and Pricing Line: 0860 11 22 44
FNB Debt Review Centre: 0860 36 20 02
On-line Fee Calculator: http://www.fnbweb.co.za/onlinecalculator/