INTEREST RATES.

Ashburton Guardian, Volume 56, Issue 245, 29 July 1936, Page 7

INTEREST RATES.

THE REDUCTION TO STAND.

STATEMENT BY PRIME MINISTER

(Per Press Association.)

WELLINGTON, July 28. A reiteration of his comment made in the House last week that the Government was not considering the restoration of cuts in interest niade under the National Expenditure Adjustment Act, 1932, was given by the Prime Minister (the Rt. Hon. M. J. Savage) in an interview to-night. It was pointed out to Mr Savage that under the existing legislation the 20 per cent, reductions in interest and rent effected by the last Government would remain in operation only until March 31 next year. He was asked whether the present Government intended to extend the operation of this portion of the legislation, or whether it intended to adopt the present reduced scale as something in the nature of a permanent basis for the future. “I have said before, and I am quite prepared to go on saying, that the day of high interest rates is gone,” Mr Savage replied. “Our view generally is that the whole money service is something that should be provided by the Crown itself. It can be taken as definite that we are not restoring the cuts in interest but at this stage [ am not prepared to say anything as to any future action that may be taken by the Government.”

In answer to a further point that to maintain interest rates at their present level would require some iurtnor legislative action before March 31 next year, Mr Savage replied that any necessary legislation to give effect to the Government’s policy would be introduced in due course.