INTEREST RATES MAY BE REDUCED.

Star (Christchurch), Volume XLIV, Issue 144, 19 June 1931, Page 5

INTEREST RATES MAY BE REDUCED.

HOPEFUL STATEMENT BY BANK CHAIRMAN, (Special to the “ Star.”) WELLINGTON, June 19. A hopeful remark regarding the possibility of a reduction in interest rates was made by the chairman of the Bank of New Zealand (Mr William Watson) in his address at the annual meeting of shareholders to-day. After remarking that there had been no change in interest rates since the previous annual meeting. Mr Watson said: “Although the demand for money exceeds the supply, we hope that ere long it may be possible to bring about a reduction of rates, but as the banks do not control interest rates, nothing can be accomplished in the way of reduction unless certain other important interests can be induced to cooperate. “ The Bank of New Zealand rate was reduced from 3 per cent to 2i per cent on May 14. It is to be hoped that the lower rate will tend to stimulate enter- , prise in the Old Country, though it is feared that the accumulation of funds in London denotes want of confidence in the industrial outlook. The Bank of England, rate has little or no effect on rates here."