DECISION WELCOMED

Poverty Bay Herald, Volume LV, Issue 17067, 27 September 1929, Page 8

DECISION WELCOMED

BANK RATE INCREASE UNCERTAINTY ENDED (British Official Wireless.) Roc. 1 p.m. _ RUGBY, Sept. 26. An increase in the- bank rate by 1 per cent, to 6j per cent, was announced to-day after the usual weekly meeting of the court of directors of the Bank of England. The discount rate has remained at 5-j per cent, since February 7 this year, when it was raised to that figure from 4£ per cent. The last occasion on which the 61, per cent, hank rate prevailed was April. 1921. Jt is attributed to the continued efflux of gold. Yesterday a further large amount of approximately £1,000,000 was withdrawn from the Bank of England, partly for shipment to America, and partly for export to the Continent, bringing the total for the week up to nearly £3,500.000, and reducing the tot;]! stock of gold in the bank to £133,000,000. Withdrawals ,of gold have been exceptionally large during the year, but it is anticipated that the rise in the discount rate will -check this tendency. On the whole, the city of London has welcomed the rise in the hank rate, as it Inis definitely cleared up the uncertainty of the last few w r eeks, which has had a more clogging effect on the stock markets than dear money is likely to have. There was a general marking down of prices on the Stock Exchange, after the rise was announced, but there was no pronounced selling. The exchange position has been quick to respond to the higher bank rate. The pound sterling, as expressed in American dollars, lias risen, and both French and German exchanges have moved sharply in favor of London. NEW YORK INTEREST RATES (Elec. Tel. Copyright—United Press Assn.) (Australian and N.Z. Press Association.) (Received September 27. 2 p.m.)* NEW YORK, Sept. 26. Call money rate of renewal remained at 9 per 'cent, all day.