RISE IN N.Z. REDISCOUNT RATE
CONSEQUENCES DIFFICULT TO GAUGE LONDON PRESS COMMENT U P A -IJ* Electric lelnarapb—Cnpvnebtl (Received 24th November. 10.20 a.m.) LONDON. 23rd November. The City editor of "The Times,” commenting on the rise in the New Zealand rediscount rate, points out (hat the precise consequences arc difficult to gauge, as there is no rigid link between the Reserve rediscount and the commercial banks’ rates for loans and overdrafts, but presumably it will Immediately affect the rate ot New Zealand Treasury Hills. “The Times" adds that the basic reason for 1 lie action is presumably a further reduction of the Reserve Bank s sterling funds Since the exchange adjustment on 21st October, assets have fallen during the four weeks ending 14th November by 0.456.000 (New Zealand currency), compared w-ith £1.033,000 for the corresponding period in 1937, the year’s drop amounting to £II.OOO 000 The Reserve Bank has adopted the traditional practice of raising the rate with the expectation of stemming the drain and re-attracTwft money to New Zealand.
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Nelson Evening Mail, Volume LXXII, 24 November 1938, Page 8
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170RISE IN N.Z. REDISCOUNT RATE Nelson Evening Mail, Volume LXXII, 24 November 1938, Page 8
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