DISCOUNT RATE
REDUCED IN AUSTRALIA
The Commonwealth Banik of Australia announced on Monday last that as from May 1 the discount rate on Treasury bills would be reduced from IS per cent, to 1& per cent, per annum. The reduction will result in an interest saving of about £130,000 a year to the Australian Governments on the existing short-term debt covered by Treasury bills. This amounts to a little more than £50,000,000, most of which was advanced by the banks in the period of financial reconstruction following the depression. The rate on Treasury bills has fallen sharply in the last nine years. Before the depression it was 6 per cent. It was reduced under the provisions of the Premiers' Plan to 4 per cent, in July, 1931, and there have been progressive reductions ever since. The present rate of If per cent, has operated since January 1, 1935. It is believed that the reduction will influence the market to support the next war loan.
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Bibliographic details
Evening Post, Volume CXXIX, Issue 95, 22 April 1940, Page 10
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164DISCOUNT RATE Evening Post, Volume CXXIX, Issue 95, 22 April 1940, Page 10
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