BANK OF ENGLAND
STABILITY OF DISCOUNT RATE. A record has been established by the Bank of England in the unchangeability of the discount rate. This rate is the guiding standard of money market transactions, and fluctuations are always disturbing. On January 29, 1932, the rate was reduced to 2 per cent., and it has remained at that level for more than 31 months. The previous record was established about 40 years- ago, from February 22, 1894, to September 10, 1896, and the rate for that period, which covered 30 months and three weeks, was also 2 per cent. The Bank of England rate jumped to 10 per cent, when the Great War was imminent in 1914. The highest rate in recent years was 6 per cent., in 1931, since when it has gradually fallen to the present level. The record is the more remarkable when the unstable conditions in many countries are considered. Discoount rates in New York, Paris, and elsewhere have been altered from time to time, but the Bank of England rate has withstood all stresses.
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Otago Daily Times, Issue 22498, 16 February 1935, Page 14
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178BANK OF ENGLAND Otago Daily Times, Issue 22498, 16 February 1935, Page 14
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