NEW ZEALAND FINANCES
RAISING DF REDISCOUNT RATE CBMIKNT BY LONDON ‘ TIMES ’ Press Association By Telegraph—Copyright LONDON, November 23. (Received November 24, at 11 a.m.) The City Editor of 1 The Times,’ commenting on the rise in the New Zealand rediscount rate, points °“t. tnat the precise consequences are difficult to gauge, as there is no rigid jink between the Reserve Bank’s rediscount and the commercial banks’ rates, .loans and overdrafts; but'presumably it will immediately affect the rate of New Zealand Treasury bills. ■ . ‘The Times’ adds that the basic reason ’for the action is presumably the further reduction , in the Reserve Bank’s sterling funds. Since the exchange adjustment on October 21 the assets have fallen during the four weeks ending November 14 by £3,456,000 New Zealand pounds, compared with £l,033,000 for the corresponding period in 1937, the year’s drop amounting to £ll-000,000. The Reserve Bank adopted the traditional practice of raising the rate with the expectation of stemming the drain and reattracting money to 1 New Zealand.
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Evening Star, Issue 23123, 24 November 1938, Page 10
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166NEW ZEALAND FINANCES Evening Star, Issue 23123, 24 November 1938, Page 10
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