RISE PREDICTED.

Ashburton Guardian, Volume 58, Issue 39, 25 November 1937, Page 9

RISE PREDICTED.

TREND OF INTEREST RATES. (Per Press Association.) WELLINGTON, November 24. That some rise in interest rates was inevitable was the opinion expressed by Mr H. Kitson (chairman of the Stock Exchanges’ Association of New Zealand), in his address at the annual meeting to-day. Control by the authorities could postpone a rise, be said, but a rise would come sooner or later. “We all recognise that sooner or later money rates will rise,” said Mr Kitson. “The question is when—now, in one year, two years, or three years time? It seems reasonable to answer, ‘ Not for a considerable time.’ “There has been a very gradual but persistent decline in gilt-edged prices, not so much in New Zealand as overseas. In the long run even determined Treasury policy operating a close economy cannot indefinitely keep rates low if all natural factors are operating in the contrary direction. In practice the effective measure of control is substantial, and in present conditions, and for some time, the Government is likely to be successful in any efforts it may make to prevent an immediate and substantial riso in rates.”