U.K. BANK RATE

Press, Volume C, Issue 29548, 24 June 1961, Page 16

U.K. BANK RATE

No Increase (NZ.P.A .-Reuter—CopyngM) LONDON, June 22 The British bank rate remained unchanged today at 5 per cent. Some press reports had suggested that the rate might be increased to 6 per cent, or more to make it less attractive to shift money from London, and to strengthen overseas confidence in sterling pending other moves to improve the financial situation. Reuter's financial editor (Sydney Campbell) commented that the unchanged rate was in line with most expectations. He added: “Bank rate is a short-term money rate. “In itself, it does not have much bearing on the problems which the Chancellor of the Exchequer (Mr Selwyn Lloyd) has described as long-term. “Several Shocks" “There have been several shocks abroad, including South African exchange controls and the depreciations of the Canadian dollar only a week after the head of the International Monetary Fund had dismissed rumours of further currency changes as entirely baseless "The Bank of England has refrained from adding another shock at home. “A rise in bank rate would have been badly timed if it were interpreted abroad as a panic action or as an advertisement rather than a remedy for the problems.”