The new prime rate
in South Africa is as yet not clear.
The focus of this article is the bank prime rate
, a posted lending rate that ostensibly represents the rate banks offer to their most creditworthy borrowers.
The floating rates on their mortgage loans are also expected to be increased by 0.25 point from the current 2.375 percent because they are tied to the short-term prime rates
, financial sources said.
Analysts expect the prime rate
hike will have little impact on corporate borrowers, as banks actually offer lower rates than their prime rates
in many cases to beat the competition.
Shinsei Bank and Aozora Bank also announced cuts in their long-term prime rates
to 1.70% from 1.90%, effective Tuesday.
Short-term prime rates
are charged on loans of less than one year to banks' most creditworthy corporate customers.
The other two long-term credit banks are likely to lower their long-term prime rates
in tandem with IBJ.
The nationalized Long-Term Credit Bank of Japan and Nippon Credit Bank also announced they will cut their long-term prime rates
by the same margin to 2.3% Friday.