BANK RATE REDUCED.

New Zealand Herald, Volume LXIX, Issue 21165, 23 April 1932, Page 11

BANK RATE REDUCED.

LONDON WELCOMES NEWS.

HALVED IN NINE WEEKS.

BRITISH FUNDS FIRMER

By Telegraph—Press Association—Copyright LONDON, April 21,

The Bank of England discount rate was further reduced to-day to 3 per cent, from 3g per cent.

The rate has now been halved in nine weeks. To-day's reduction is welcomed in (lie City and lias had a stimulating effect oti British funds. These, after a firm opening, were again marked up after the announcement, closing with a general rise of l-lbth to 3 Bths.

With four reductions in rapid succession in .a little over two months this year the discount rate of tho Bank of England is now at the level—3 per cent.— which obtained from May 1, 1930, until May 14, 1931, when there was a fall to per cent. It was then raised in tlireo stages to 6 per cent., which was reached on September 21, when departure from the gold standard was announced. That was the figure until February 18 this year, when tho first of the four reductions already mentioned was announced. Following is a summary of the bank srates in the principal financial centres, showing the dato and character of the last change in each case: — Change. From To Amsterdam . . Sept. 29 2 3 Berlin .. April 8 6 5i Brussels . . . . Jan. 13 2$ 31 New York .. Feb. 2fi 31 3 Paris . . . . Oct. 9 2 2i Switzerland . . * 2J 2 'January 22, 1931. AUSTRALIAN RATES. CHANGES ANNOUNCED. SEQUEL TO LONDON ACTION. (Received April 23. 12.15 a.m.) SYDNEY, April VI. The Commonwealth Bank reports that there will be no alteration in the basic telegraphic transfer rate of exchange, Australia on London, but there are changes in all other usances, from on demand to 120 days, ranging from Is 3d to 6s 3d for buying rates, and from Is 3d to 3s 9d for selling rates. This is in consequence of the decline in the Bank of England discount rate.

FEDERAL ATTITUDE. ANNOUNCEMENT AT HOME. LONDON. April 21. The Federal Attorney-General, Mr. J. G. Latham, has issued a statement, to the press in which he cites the declara.tion of tho Federal Prime Minister, Mr. J. A. Lyons, that Australian exchange would not he varied for political reasons and also Sir Robert Gibson's announcement on the subject. Mr. Latham adds: These statements make it clear that the Commonwealth Government has no intention of interfering with the Commonwealth Bank Board's function in determining the exchange rate in the interests of the community generally.