Caution on high interest
PA Wellington The Associate Minister of Finance. Mr Falloon. has questioned the wisdom of a finance company which offers a 22 per cent postfreeze interest rate. “All the indications are that inflation and as a consequence. interest rates, will be falling by then." he told Parliament. Mr Falloon said he hoped individual companies did not follow the course adopted by
the Wellington-based finance company, because the Government might have to "look at it.” He was asked by Mr C. B. Townshend (Nat.. Kaimai) if the offer contravened the price freeze interest regulations, and if any steps were being taken to discourage the practice. Mr Falloon said the offer apparently was made subject to any amendment or extension of the regulations, and appeared to be legal.
Mr Townshend asked if the Minister would issue a public warning to people who might be attracted to such an investment. Mr Falloon said. “I think those people will have to make their minds up what their own personal vulnerability will be if inflation falls after the freeze. “If they are borrowing at _ very high interest rates they may well find it difficult to service that borrowing." he said.
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Press, 27 October 1982, Page 28
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198Caution on high interest Press, 27 October 1982, Page 28
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