BANK-RATE REDUCED.
DOWN TO 3i PER CENT. RESERVE BANK DECISION. (By Telegraph.—Press Association.) WELLINGTON, Saturday. The Reserve Bank of New Zealand announces that its minimum rate for discounting bills will be reduced to 3i per cent, per annum as from July 29.
It is explained that th» minimum rate at which the Reserve Bank is willing to discount bills should no,t be confused with the rate at which the trading banks are prepared to grant overdraft facilities. During a period of easy money conditions, it is not unusual for the bank rate of a country —that is, the discount'rate of the Central Bank—to be considerably below the ordinary lending rate : of other banks.' Therefore the fall in the Genual Bank’s rale does not necessarily indicate that a corresponding movement should or will take place in the rates quoted by other banks.
Permanent link to this item
https://paperspast.natlib.govt.nz/newspapers/WT19350727.2.32
Bibliographic details
Waikato Times, Volume 118, Issue 19639, 27 July 1935, Page 7
Word Count
141BANK-RATE REDUCED. Waikato Times, Volume 118, Issue 19639, 27 July 1935, Page 7
Using This Item
Stuff Ltd is the copyright owner for the Waikato Times. You can reproduce in-copyright material from this newspaper for non-commercial use under a Creative Commons BY-NC-SA 3.0 New Zealand licence. This newspaper is not available for commercial use without the consent of Stuff Ltd. For advice on reproduction of out-of-copyright material from this newspaper, please refer to the Copyright guide.
Log in