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Monday, 22 October 1973
Page: 2404

Mr SNEDDEN (BRUCE, VICTORIA) - My question is directed to the Treasurer. Has the Governor of the Reserve Bank of Australia told the trading banks that money will become scarcer and dearer to the point where it hurts? Were the banks told to reduce their lending? If so, was this done on Government instructions and specifically by the Treasurer? At what level will interest rates be to make money dearer than at the present time when the overdraft rate is 9J per cent?

Mr CREAN - I would say that as usual the honourable gentleman is behind hand with his information. The interest rates, as he knows, have been increased. Before they were increased discussions were held, as they should be, between the Reserve Bank and the trading banks. Whether the Governor of the Reserve Bank used the picturesque language that the Leader of the Opposition has attributed to him I do not know but I think he told them something of the sort that the gist of the words used by the honourable member would suggest.

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