THE BANK RATE

Otago Daily Times, Issue 21598, 19 March 1932, Page 11

THE BANK RATE

A FURTHER REDUCTION THIRD WITHIN A MONTH (United Press Association.) (By Electric Telegraph—Copyright.) LONDON, March 17. The bank rate has been further reduced to 31 per cent. BACK TO JULY LEVEL. (British Official Wireless.) RUGBY, March 17. The city to-day received a welcome surprise when a further reduction of the bank rate—the third within a month —was announced. The rate is now back to the level of July last year, before the world monetary disturbances were beginning to be seriously felt. Today’s reduction was enthusiastically received, and was considered as a further welcome move to help trade recovery. Coming so soon after the announcement of the Treasury’s £110,000,000 conversion offer to Treasury bondholders, the reduced bank rate naturally stimulated the whole market for gilt-edged stocks, and a cheerful tone developed in other sections of the exchange. AUSTRALIAN BANKS. RATES OF EXCHANGE ADJUSTED. SYDNEY, March 18. (Received March 18, at 11.30 p.m.) The Commonwealth Bank and the trading banks have again adjusted the buying rates of exchange Australia on London owing to the further reduction in the Bank of England discount rate. The basic telegraphic transfer rate is unchanged, but the on demand rate has been increased by Is 3d and the 120 day rate by Cs 3d.