BANK RATE DOUBLED.

Auckland Star, Volume LXX, Issue 200, 25 August 1939, Page 7

BANK RATE DOUBLED.

Money Market Under Bank Of England Control. — 4 'CHANGE FIXES PRICE LIMIT. (Received 12 noon.) LONDON, August 24. A decision to increase the bank rate to 4 per cent lias resulted from a heavy call upon the banks for money. The rate had been unchanged at 2 per cent since June 30, 1932. The move is tantamount to placing the money market ■ under the control of the Bank of En<r-' land. ° Financial circles In London express the opinion that the increased rate is designed to discourage withdrawals of foreign balances. The banks have also decided that the rate of interest on deposits will be 2' per cent until further notice, subject to depositors receiving seven days' notice. The Stock Exchange committee has banned dealings in all British funds, and Dominion and colonial securities at a less price than the lower of the prices fjuoted on the official list yesterday. Similarly the committee has decided to fix minimum prices for gilt-edgeds. The Stock Exchange committee fixed the minimum prices as follows:—Giltedged stock. 24 per cent; consols, 624; war loan 88J. , The interest rate has risen from a i per cent.