Status Quo On U.K. Rate
(N.Z.P.A.-Reuter—Copyright) LONDON, Aug. 16.
A faint hope that Britain’s 71 per cent crisis-level Bank Rate would be reduced this week has been dashed—the existing rate has been confirmed by the Bank of England.
Last week financiers began adding all the factors which showed promise of such a reduction—stronger sterling, better overseas trading in June, a £2lm rise in gold and dollar reserves at the end of July, and lower interest rates in the United States and Japan.
Then, on Tuesday, came the first hint that the experts’ hopes might not materialise, when the Government announced that Britain’s overseas trading balance-sheet for July had deteriorated, and this was followed by a sizeable drop in the sterlingdollar rate. Some observers still clung to a faint hope that there would be a cut, but at the weekly Bank Rate fixing, the Bank of England let it be known that there would be no change.
The 7J per cent rate was fixed on March 21, when I per cent was clipped off the record 8 per cent imposed at the time of devaluation, in November.
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Press, Volume CVIII, Issue 31760, 17 August 1968, Page 13
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186Status Quo On U.K. Rate Press, Volume CVIII, Issue 31760, 17 August 1968, Page 13
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