Asb Bank Limited

ASB 90-Day Bank Bill Rate

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The ASB 90-day bank bill rate is the interest rate that ASB Bank charges other banks for short-term loans.

It is one of the most important interest rates in New Zealand, as it is used to set other interest rates, such as the Official Cash Rate (OCR).

The ASB 90-day bank bill rate is determined by the supply and demand for short-term loans.

If there is a lot of demand for loans, the interest rate will go up. If there is not much demand for loans, the interest rate will go down.

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What is the ASB 90-day bank bill rate used for?

The ASB 90-day bank bill rate is used for a number of purposes, including:

  • Setting the Official Cash Rate (OCR): The Reserve Bank of New Zealand (RBNZ) uses the ASB 90-day bank bill rate to set the OCR. The OCR is the interest rate that the RBNZ charges banks for overnight loans.
  • Pricing other interest rates: Banks use the ASB 90-day bank bill rate to price other interest rates, such as home loan interest rates and business loan interest rates.
  • Investing: Investors use the ASB 90-day bank bill rate to invest in short-term debt instruments, such as 90-day bank bills and commercial paper.

How to track the ASB 90-day bank bill rate

The ASB 90-day bank bill rate is published daily by the RBNZ on its website. You can also track the ASB 90-day bank bill rate on a number of financial websites, such as Interest.co.nz and Bloomberg.com.

Conclusion

The ASB 90-day bank bill rate is an important interest rate in New Zealand. It is used to set other interest rates, such as the OCR, and it is also used by investors and businesses to make investment decisions.

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