BANK RATE REDUCED
DOWN TO 4 PER CENT. IN LONDON NEW YORK MAY FOLLOW British Official Wireless RUGBY. Friday. The discount rat 3 of the Bank of England was todav reduced from 4J to 4 per cent. The last time this rate was declared was October, 1925. During last year five changes were made, the rate varying from 5 per cent, to t>i per cent The latter high rate was due largely to the speculative boom, but it had the effect of bringing about heavy deflation and releasing a large volume of surplus funds. There is still uncertainty over the continued foreign demand for gold, but the definite influence which has decided the bank to lower the official minimum is the fall in discount rates in New York and indications that the Federal Reserve Bank will reduce Its discount rate in due course. The last period in which the London bank rate was 4 per cent, was from October 1 to December 3. 1925. On the latter date it was raised to 5 per cent., being reduced to 4J per cent- on April 21. 1927. There was no further alteration until February 7. 1929 when the increase to 5J per cent, was made.
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Sun (Auckland), Volume III, Issue 916, 8 March 1930, Page 9
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203BANK RATE REDUCED Sun (Auckland), Volume III, Issue 916, 8 March 1930, Page 9
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