Panel 1
Big interest rate moves
Some fell very fast
Others not at all
Positive yield curve
Change in yield curve
January 13, 2008
Panel 2
2008 starts high
OCR at 8.25%
2 year fixed at 9.3%
6mth fixed at 9.6%
Variable rate at 10.3%
Credit card rate at 19.5%
January 13, 2008
Panel 3
Credit crunch kicked in
Foreign funds expensive
Rates rose by March
Variable 10.6%
Credit Card 20.2%
January 13, 2008
Panel 4
First OCR cut July 25
Then 50 in September
Then 100 in October
Then 150 in December
January 13, 2008
Panel 5
But not all retail rates fell
OCR fell 325 basis points
But credit cards unchanged
Variable mortgages
Fell by 275 basis points
January 13, 2008
Panel 6
6 month fell 300 bps
Business held at 13.6%
Bank margins squeezed
230 to 215
High overseas funding
High deposit costs
January 13, 2008
Panel 7
Positive yield curve
Borrowers to go short
OCR to 4% by mid 09
Variable under 7%
2 yr fixed over 7%
January 13, 2008
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