BANK RATE REDUCED

Feilding Star, Volume 8, Issue 2496, 8 March 1930, Page 5

BANK RATE REDUCED

CHEAPER MONEY IN BRITAIN INFLUENCE OF NEW YORK (Aust’. and N.Z. Cablet Rugby, Alarch 7. The Bank rate was to-day reduced from 4j to 4 per cent. The last time this .rate was declared was in October. igz;. During the last year five changes were made, the rate varying from 5 to 6i per cent. It mar be recalled that the latter high rate was due laregly to the speculative boom, but it had the effect of bringing about heavy deflation and releasing a large volume of surplus funds* There is still uncertainty over the continued foreign demand for gold, but the definite influence which has decided the Bank to lower the official minimum is the fall in discount rates an New York and the indication that the Federal Reserve Bank will reduce its discount rate in due course.