Warning on interest
Wellington reporter The Prime Minister (Mr Muldoon) gave clear warning yesterday that the Government will move against financial institutions offering high rates of interest out of line with the drop in the rate of inflation. This followed his instruction last week to the Reserve Bank to become more adtive
in the short-term money market with a view to comr. bating increases in interest ’ rates. “Contrary to statements by various individuals, the Gov- ’ ernment proposes to take * what further steps are neces--3; sary to ensure that interest rates move in line with the < trend of inflation; which is 3 downwards,” said Mr Mul- ; doon yesterday. < ; -t < If the financial-institutions wish to pay ttioie foK their deposits in spite of this downward trend; then they are making bad business de■itfsions’’ he said. " ?. '• ■ “The’ Government has available to it a wide range ’ of weapons .which' can . be used to ensure that Government policy is implerftented and they will be used if it appears necessary,” he said.
Permanent link to this item
https://paperspast.natlib.govt.nz/newspapers/CHP19810429.2.16
Bibliographic details
Press, 29 April 1981, Page 2
Word Count
166Warning on interest Press, 29 April 1981, Page 2
Using This Item
Stuff Ltd is the copyright owner for the Press. You can reproduce in-copyright material from this newspaper for non-commercial use under a Creative Commons BY-NC-SA 3.0 New Zealand licence. This newspaper is not available for commercial use without the consent of Stuff Ltd. For advice on reproduction of out-of-copyright material from this newspaper, please refer to the Copyright guide.
Copyright in all Footrot Flats cartoons is owned by Diogenes Designs Ltd. The National Library has been granted permission to digitise these cartoons and make them available online as part of this digitised version of the Press. You can search, browse, and print Footrot Flats cartoons for research and personal study only. Permission must be obtained from Diogenes Designs Ltd for any other use.
Acknowledgements
This newspaper was digitised in partnership with Christchurch City Libraries.