U.S. bank cuts prime rate
NZPA-Reuter London j The United States dollar tumbled sharply yesterday as speculation spread on world foreign exchange markets that the recent rise of [American interest rates to (record levels might have [peaked. The Chase Manhattan Bank, the third largest U.S. commercial bank, announced in New York that it was immediately reducing its prime lending rate from 20 per cent to 19.75 per cent. The Continental Bank of Philadelphia then made a similar announcement. '
It was ndt certain whether these moves — very slight reductions — signalled pos- I sible changes in the recent trend for high interest rates. Chase Manhattan said the future trend remained uncer-, tain. Other bankers in New; York said interest rates may be near their peak but credit -V demand may necessitate a 1 small increase before a gen- - eral decline. ■
Nevertheless there was excitement on the markets after the two bank rate re* ductions. European markets!.. reported hectic trading just before they closed.
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Press, 18 April 1980, Page 18
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161U.S. bank cuts prime rate Press, 18 April 1980, Page 18
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