INTEREST RATES.
AUSTRALIAN DOWNWARD TREND. The present downward trend of interest rates on Government loans in Australia contrasts with the movement during the last war. Mainly under the influence of borrowing for war purposes, the average rate of interest on the total public debt payable in Australia rose from £3 13/3 per cent in the 1914-15 financial year, to £4 5/4 per cent in 1918-19. Interest on war loans only averaged £3 19/3 per cent in 1915-16, and £4 10/3 per cent by 1918-19. During this period the amount of war debt maturing in Australia increased from £39,725,161 to £194,066,941.
The average interest rate on the whole internal debt last financial year was £3 12/9 per cent against £3 12/11 per cent for each of the two preceding years, and £3 12/9. per cent for 1935-36. These averages, of course, include the lower interest-bearing short-term debt. With the first new war loan expected shortly, the contrast between present and 1914-18 long-term rates is indicated by the Stock Exchange market yield, averaging about £3 12/4 per cent.
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Auckland Star, Volume LXXI, Issue 46, 23 February 1940, Page 4
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176INTEREST RATES. Auckland Star, Volume LXXI, Issue 46, 23 February 1940, Page 4
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