BANK RATE OF INTEREST
Sir—When the New Zealand banks raised their- rates first to 6 per cent, then to 61 per cent., and finally to a minimum’ of 7 per cent., the argument put forward was that th«se. figures were lower than those in London, and It tne pates were not put up funds would go to London for investment. Tho London rate has now gone down in a series ot drops to 5 per cent., but the united hanks doing business in New Zealand are still charging a minimum of 7 per ce,ut. This rate is a big load on farmers and tradesmen, and it is high tune the Government directed that the rate of interest should bo reduced. Whenever a State bank is mentioned it is pointed out that the Bank of New Zemand is practically this. Vito will now see whether it is the Government that controls the Bank of Now Zealand or the Bank
of Now Zealand that is supremo to itself. There is not the doubt if the Bank pf New Zealand lowers the rate that the other banks will at once respond.—l am. etc., W.T.K.
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https://paperspast.natlib.govt.nz/newspapers/DOM19211112.2.88.4
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Dominion, Volume 15, Issue 42, 12 November 1921, Page 8
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191BANK RATE OF INTEREST Dominion, Volume 15, Issue 42, 12 November 1921, Page 8
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