INTEREST RATES

Hokitika Guardian, 22 February 1933, Page 5

INTEREST RATES

FORECAST OF A REDUCTION

ANTICIPATED LEGISLATION

(Per Press Association — Copyright.)

WELLINGTON, February 20

It is reported that the Government contemplates 'bringing down further legislation dealing with interest rates. Anticipations are that the interest rates on Government securities will be reduced, by 20 per cent, on the original rates. There will be an increase in the stamp duty on local body debentures from. 10 per cent-, to 20 per cent, also a reduction on deposit rates, but mortgage interest rates are not to be touched. Interviewed, the Minister of Finance said lie was unable to make any statement regarding the Government's intentions. Cabinet had considered the question of interest reductions, but no decision had yet been reached. Mr Coates said that in his statement .to the House at the beginning of the session lie had indicated the position the Government was likely to ad<v;t in regard to l interest rates.

The fact that mortgage interest rates are not to be touched is an indication that the Government hopes that it will he possible for- mortgagors and mortgagees to arrive at suitable adjustments without the necessity for legislation.

It is anticipated that the legislation dealing with interest rates will be introduced early next- week.