BANK RATE TWO PER CENT.

New Zealand Herald, Volume LXIX, Issue 21223, 1 July 1932, Page 11

BANK RATE TWO PER CENT.

FURTHER LONDON FALL.

LOWEST LEVEL SINCE 1897.

SIXTH CHANGE THIS YEAR.

MOVEMENT IN 19 WEEKS.

REDUCED FROM 6 PER CENT.

By Telegraph—Press Association—Copyright. (Received July 1, 12.12 a.in.) LONDON, June 30. Tho discount rate of the Bank of England was reduced to-day from 21 to 2 per cent.

By tho reduction of tho Bank of England rate to 2 per cent, it in brought down to a level that has not been experienced since 1897. For the six years previous to that 2 per cent, had been common and, indeed, ruled without change during the whole of 189/5. P-ecords going back to 1848 show no instance of the discount rate falling below 2 per cent. The outstanding feature of the London money market since February has been the rapid progressive fall of the bank rate. The first change came on February 18 when there was a reduction from 6 to 5 per cent. The first-named level had ruled since September 21, 1931, when an increase from 4£ per cent, was made, this coinciding with the suspension cf payments by the Bank oi England. In the 19 weeks since February 18 there have been six changes in all. The second, on March 10, was of 1 per cent., bringing it down to 4 per cent. The remaining four have all been of g per cent.

Last week the l-ediscount rate of the Federal Reserve Bank of New York l'ell to 2j per cent, from the 3 per cent, which had ruled since February 26.