U.K. Bank-rate May Be Cut

Press, Volume CVI, Issue 31276, 24 January 1967, Page 13

U.K. Bank-rate May Be Cut

(N.Z.P.A.-Reuter—Copyright) LONDON, January 23. Speculation that Britain’s bankrate might soon be cut mounted in London today, after a week-end meet-

ing of five Western Finance Ministers.

Rumours that the rate might be reduced soon from) the 7 per cent imposed during last (northern) summer’s | sterling crisis, have persisted in financial circles in London,’ since the New Year. Some newspapers today thought yesterday’s pledge by British, United States, French, 1 Italian and West German Finance Ministers to cooperate in attempts to lower 1 national interest rates could, imply a British cut was immi- 1 nent. But Treasury officials dis-' couraged speculation that the'

>: talks might have been partly i i intended to clear the way for > a lowering of the British rate. >| The “Financial Times” coml.mented in a front-page report i, on the week-end meeting that the agreement to co-operate iin seeking to lower rates meant there was a better ,! prospect of an early reduction 11 of the British rate. ■ The Conservative “Daily ■ 1 Telegraph” said that, alI, though no bargains were ■ | struck at the Finance Ministers’ meeting, some pre- ' judices and misunderstandi ings had been swept away.