INTEREST REDUCED
LONG-TERM CHARGES
NEW AUSTRALIAN LOAN GO a.m.) SYDNEY. Nov. 21
The Prime Minister. Mr. J. B. Chifiey, announced that long-term interest in the next Commonwealth loan would be reduced from £3 5s per cent, to £3 2s 6d per cent. The short-term rate would remain at 2 per cent. The financial editor of the Sun says: ‘The .move is a continuation of .the Government’s cheap money policy which has been effectively carried out during and since the war. The decision is sure to have a profound effect on the market values of fixed income securities.
The existing 3] per cent. Commonwealth bonds, which are at present quoted a.t minimum prices, will appreciate in market value to bring the yield down to the new level. The reduction in the Government basic interest rale should also have a strengthening effect on the market values of preference shares as well as regular dividend-paying ordinary shares.
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Bibliographic details
Gisborne Herald, Volume LXXIII, Issue 22184, 21 November 1946, Page 7
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154INTEREST REDUCED Gisborne Herald, Volume LXXIII, Issue 22184, 21 November 1946, Page 7
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