RATES OF INTEREST

Wanganui Chronicle, Volume LXXXIII, Issue 19843, 18 May 1927, Page 7

RATES OF INTEREST

THE BANKS’ INCREASE DETRIMENTAL EFFECT ON BUILDING TRADE. (Special to “Chronicle.’’) WELLINGTON, May 17. "The action of the banks in increasing the interest and overdraft rate by one half per cent, is having a detrimental effect on the building trade in all parts of New Zealand,” stated a prominent local builder and valuer today. “In Wellington,” ho went on, “members of the various smaller building loan companies are withdrawing their deposits and giving the money to tho banks because of tho higher rate of interest, and reports from other parts of the Dominion are to the effect that the same thing is happening in other centres. Thus the building trade, already experiencing a quiet time in most parts of the Dominion, is suffering a further set-back. At the moment tho building loan companies are doing nothing to counter the move of the banks, but it is anticipated that action will be taken at an early date. The bigger companies are still paying higher rates than those given by the banks, and are not affected in any marked degree. ”