BANK RATE DOWN.

Press, Volume LXVIII, Issue 20494, 12 March 1932, Page 15

BANK RATE DOWN.

—♦ —— NOW AT FOUR PER CENT. ENTHUSIASM IN LONDON. (VSITED I>HESS ASSOCIATION—B7 ELECTRIC TBr.EGEAPH—corTOisnr.) LONDON, March 10. ,0 The bank rate has been reduced to 4 m per cent. The announcement' of the g reduction was wildly cheered by excited crowds, who disorganised the traffic as lt they rushed headlong to the telegraph d and telephone to advise interested par>f ties. The decision will help business men "*} to carry stocks of commodities on borrowed money, enabling the maintenance 'S of, and even " much-needed improve ment in, commodity prices, ii The stock market did not react to the d lower rate, as it had already been dis--0 counted durhig'the week. y The last reduction in the. bank Tate a took place on February 18th, when the rate was lowerefl to 5 per cent, from 6 ® per cent., at which it had stood since September 20th, When the rate was. raised, in connexion with the suspension ,f of the gold standard, from 4} per cent. ! , s to 6 per cent. The following tables show the discount rate of the Bank of England from the beginning of 1929, until England went off the gold standard in September last: 1029 Per cent. e February 7th, raised from 4J to 1 September 20th, raised to .. b'J y October 31st, reduced to .. 6 3 November 21st, reduced to ~ gj December 12tli, reduced to .. 5 1930 February 6th, reduced to .. 4i March 6th, reduced to ..'4 t March 20th, reduced to .. 3-J May Ist, reduced to .. 3 1031— May 14th, reduced to .. 21 July 23rd, raised to .. 3^ July 30th, raised to .. '4i September 20th, raised to .. 6 EFFECT IN AUSTRALIA. (Received March 11th, 10.10 p.m.) SYDNEY, March 11. As a result of the reduction in the • Bank of England discount rato the trading banks hero have adjusted the rates at which they will buy sterling. ' For all usances except telegraph'c i transfers the "on demand' 5 , rate has i been increased by 2s 6d. Other usances • have been increased by amounts ranging » up to 12s 6d. The basic rate of ex- ' change for telegraphic transfers .is uri- , changed.