Pick-up forecast

Press, 24 July 1986, Page 28

Pick-up forecast

NZPA-Reuter Washington

The Federal Reserve Board’s Governor, Emmett Rice, said yesterday the U.S. economy will pick up steam by the end of the year, and suggested that further declines in U.S. interest rates may make little difference.

“I am not sure in my own mind that interest rates are the problem right now, that lower interest rates will in the short run make any significant difference in the performance of the economy," Mr Rice, a governor of the central bank since 1979, said in an interview.

He said interest rate reductions already in place, teamed with the lower value of the dollar in currency markets and reduced inflation, should lead to greater economic activity in the United States before the end of the year.

Prime-West Corporation, Ltd, has announced the appointment of two key executives to its merchant banking division. Mr Nick Wevers, in addition to his commercial experience with Dalgety (NZ), Ltd, and IBM (NZ), Ltd, has for the past five years been the South Island manager of the Marac Merchant Banking Group. He will be responsible for providing finance packaging services to the corporate financial market Mr Allistair Blair will be responsible for margin trading and finance facilities to be marketed by Prime-West In the treasury management and foreign exchange services Mr Guy Pierce, previously funds manager with PDL Industries, has been appointed. He will be part of a team which is to provide foreign currency and funds management services to exporting/importing and offshore borrowing clients. Mr David Solomon has also been appointed.