REDUCED BANK RATE.
GILT.EDGED STOCKS BOOM.
ENORMOUS BUSINESS DONE,
1 Received July 1, 5.35 p.m.) LONDON, July 1
The reduction of thu bank rate to 2 per cent. —the lowest since 1897—gave a new impetus! to day to the boom in gilt-edged stocks, of which several reached new high records on the London Stock Exchange. .An enormous amount of business was done.
The Morning Post's financial editor says the reduction reflects 1 lack of demand for loanable capital. Indirectly cheaper money may help to stimulate trade by enabling industrial concerns to raise money on easier teiTns, but for the moment it is the timidity of the investor, as well as the cheapness of money, which is causing the demand for gilt-edged stocks.
The Bank of England rate now is the lowest of any central bank, except that of Switzerland.
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Bibliographic details
New Zealand Herald, Volume LXIX, Issue 21224, 2 July 1932, Page 9
Word Count
139REDUCED BANK RATE. New Zealand Herald, Volume LXIX, Issue 21224, 2 July 1932, Page 9
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