Rates Update: F&P responds to PGG with sharp rate hikes
Fisher & Paykel made some big moves in interest rates as it raised rates across most terms up to five years. The move was likely in response to rate increases made by PGG Wrightson in early January and the overall higher rates it has been offering compared with F&P.
Both companies are BB rated which from an investor point of view means equal risk, though a savvy investor may find there could still be big differences in the risk profiles between the two companies.
F&P made a sharp 225-basis-point increase in 12-month guaranteed deposit rate to take it to 6.25% for a minimum amount of $1,000. This compares with 5.80% that PGG Wrightson is offering for a minimum amount of $500. PGG had made a similar big move for this term a month ago.
In case of non-guaranteed one-year deposits, F&P raised the rate by just 50 basis points to 7.25% which compares with 7.20% offered by PGG.
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