Note: Where available, the PDF/Word icon below is provided to view the complete and fully formatted document
 Download Full Day's HansardDownload Full Day's Hansard    View Or Save XMLView/Save XML

Previous Fragment    Next Fragment
Thursday, 8 December 1960

Mr HAROLD HOLT - Each bank will, of course, have regard to its own policy, subject to the general directives which have gone out on those matters. Generally speaking, when an increase rn deposit interest rates occurs it normally follows that there will be some increase in the interest rates charged by the particular financial institution, but how it applies this increase is a matter for that institution, within the broad directives which the Reserve Bank has announced. I would say, Sir, adding a point of detail to my earlier answer, that associated with an increase in deposit rates there is also to be an increase in the limit of deposits on which the increased interest will be paid. The combined effect of these should be to encourage, usefully, the deposit of savings in the savings banks, and these have been, as honorable gentlemen know, a most valuable source of lending for home buildin L! and other valuable community purposes. While in particular cases there may well be some increase in interest rates, to the extent that the savings banks are able to secure additional funds by this action, other people who would have had to pay very much more for their borrowings outside the savings banks, in future will be able to secure funds from those banks at very reasonable rates of interest.

Suggest corrections