COMMONWEALTH BANK CUTS AUSTRALIAN SPLIT PRIME
The Commonwealth Bank of Australia said
it will lower its reference rate for loans to 15.75 pct from
16.25 pct and its overdraft reference rate to 16.25 pct from
16.75, effective June 24.
    Bank officials have said the bank regards the overdraft
reference rate, based on short-term rate trends, as its key
prime lending rate to corporate customers. The loan reference
rate is based on longer term trends.
    The bank is the latest to cut prime rates in recent days
following a continuing decline in market rates. Other prime
rates now range from 16 pct to 17.5 pct.
 REUTER
