INTEREST REDUCTION

Poverty Bay Herald, Volume LXI, Issue 18583, 18 December 1934, Page 5

INTEREST REDUCTION

NEW AUSTRALIAN RATES VICTORIA AN EXCEPTION SYDNEY, Dec. 17. The Commonwealth Bank Board announces a further reduction of j per cent, per annum in the interest rates on fixed deposits for three and six months. The new rates will be: Three months, 1 per cent.; and six months, 1£ per cent. The board has also decided to reduce by £ per cent, the interest rate on savings bank deposits up to £SOO, from the beginning of the year. The new rate will then be 2 per cent, per annum. The Associated Banks of Victoria have decided not to reduce their interest rates on fixed deposits in conformity with the reductions announced by the Commonwealth Bank, the chairman, Air. E. O’Sullivan declaring that interest rates have already reached bedrock level.

ACTION IN AMERICA STIMULANT TO BUSINESS WASHINGTON, Dec. 16. As a further move to ensure cheap credit as a stimulant to business recovery, the Federal Reserve Bank system to-day reduced from 3 per cent to 21 per cent the maximum interest rates payhble by ,a number of the banks on time and saving banks deposits. Furthermore, all non-Federal Reserve banks insured b} r the Federal Deposit Insurance Corporation will be likewise limited. It is estimated that 14,000, or practically all the nation’s banks, will come under these categories.