asked the Minister for Finance the central bank rate for each of the three years ended 31st December, 1968; and what the bank rate was in each of the member countries of the OECD for the same years.
Ceisteanna—Questions. Oral Answers. - Bank Rate.
66.
I assume that the Deputy has in mind the rediscount rate of the Central Bank and its equivalent in other OECD countries. This information is set out in the form of a tabular statement which, with your permission a Cheann Comhairle, I propose to circulate with the Official Report.
Following is the statement:
Central Bank Rate in Ireland and other O.E.C.D. Countries
|
Country |
Year |
Percentage rate at end of month |
|||||||||||
|
Jan. |
Feb. |
Mar. |
Apr. |
May |
June |
July |
Aug. |
Sept. |
Oct. |
Nov. |
Dec. |
||
|
1966 |
5.75 |
5.87 |
5.91 |
5.94 |
5.87 |
5.94 |
6.87 |
6.94 |
7.00 |
6.81 |
6.87 |
... |
|
|
Ireland |
1967 |
6.50 |
6.25 |
5.88 |
5.56 |
5.44 |
5.50 |
5.56 |
5.50 |
5.53 |
5.94 |
7.75 |
7.78 |
|
1968 |
7.69 |
7.62 |
7.39 |
7.38 |
7.31 |
7.44 |
... |
7.25 |
6.86 |
6.81 |
7.00 |
7.17 |
|
|
1966 |
4.50 |
... |
... |
... |
... |
... |
... |
... |
... |
... |
... |
... |
|
|
Austria |
1967 |
... |
... |
... |
4.25 |
... |
... |
... |
... |
... |
3.75 |
... |
... |
|
1968 |
... |
... |
... |
... |
... |
... |
... |
... |
... |
... |
... |
... |
|
|
1966 |
4.75 |
... |
... |
... |
... |
5.25 |
... |
... |
... |
... |
... |
... |
|
|
Belgium and |
1967 |
... |
5.00 |
4.75 |
... |
4.50 |
... |
... |
... |
4.25 |
4.00 |
... |
... |
|
Luxembourg |
1968 |
... |
... |
3.75 |
... |
... |
... |
... |
... |
... |
... |
... |
4.50 |
|
1966 |
4.75 |
... |
5.25 |
... |
... |
... |
... |
... |
... |
... |
... |
... |
|
|
Canada |
1967 |
5.00 |
... |
... |
4.50 |
... |
... |
... |
... |
5.00 |
... |
6.00 |
... |
|
1968 |
7.00 |
... |
7.50 |
... |
... |
... |
6.50 |
... |
6.00 |
... |
... |
6.50 |
|
|
1966 |
6.50 |
... |
... |
... |
... |
... |
... |
... |
... |
... |
... |
... |
|
|
Denmark |
1967 |
... |
... |
... |
... |
... |
... |
... |
... |
... |
... |
... |
7.50 |
|
1968 |
... |
... |
7.00 |
... |
... |
6.50 |
... |
6.00 |
... |
... |
... |
... |
|
|
1966 |
3.50 |
... |
... |
... |
... |
... |
... |
... |
... |
... |
... |
... |
|
|
France |
1967 |
... |
... |
... |
... |
... |
... |
... |
... |
... |
... |
... |
... |
|
1968 |
... |
... |
... |
... |
... |
... |
5.00 |
... |
... |
... |
6.00 |
... |
|
|
Federal Republic of |
1966 |
4.00 |
... |
... |
... |
5.00 |
... |
... |
... |
... |
... |
... |
... |
|
Germany |
1967 |
4.50 |
4.00 |
... |
3.50 |
3.00 |
... |
... |
... |
... |
... |
... |
... |
|
1968 |
... |
... |
... |
... |
... |
... |
... |
... |
... |
... |
... |
... |
|
|
1966 |
5.50 |
... |
... |
... |
... |
... |
... |
... |
... |
... |
... |
... |
|
|
Greece |
1967 |
... |
... |
... |
... |
... |
... |
4.50 |
... |
... |
... |
... |
... |
|
1968 |
... |
... |
... |
... |
... |
... |
5.00 |
... |
... |
... |
... |
... |
|
|
1966 |
5.25 |
... |
... |
... |
... |
... |
... |
... |
... |
... |
... |
... |
|
|
Iceland |
1967 |
... |
... |
... |
... |
... |
... |
... |
... |
... |
... |
... |
... |
|
1968 |
... |
... |
... |
... |
... |
... |
... |
... |
... |
... |
... |
... |
|
|
1966 |
3.50 |
... |
... |
... |
... |
... |
... |
... |
... |
... |
... |
... |
|
|
Italy |
1967 |
... |
... |
... |
... |
... |
... |
... |
... |
... |
... |
... |
... |
|
1968 |
... |
... |
... |
... |
... |
... |
... |
... |
... |
... |
... |
... |
|
|
1966 |
5.48 |
... |
... |
... |
... |
... |
... |
... |
... |
... |
... |
... |
|
|
Japan |
1967 |
... |
... |
... |
... |
... |
... |
... |
... |
5.84 |
... |
... |
... |
|
1968 |
6.21 |
... |
... |
... |
... |
... |
... |
5.84 |
... |
... |
... |
... |
|
|
1966 |
4.50 |
... |
... |
... |
5.00 |
... |
... |
... |
... |
... |
... |
... |
|
|
Netherlands |
1967 |
... |
... |
4.50 |
... |
... |
... |
... |
... |
... |
... |
... |
... |
|
1968 |
... |
... |
... |
... |
... |
... |
... |
... |
... |
... |
... |
5.00 |
|
|
1966 |
3.50 |
... |
... |
... |
... |
... |
... |
... |
... |
... |
... |
... |
|
|
Norway |
1967 |
... |
... |
... |
... |
... |
... |
... |
... |
... |
... |
... |
... |
|
1968 |
... |
... |
... |
... |
... |
... |
... |
... |
... |
... |
... |
... |
|
|
1966 |
2.50 |
... |
... |
... |
... |
... |
... |
... |
... |
... |
... |
... |
|
|
Portugal |
1967 |
... |
... |
... |
... |
... |
... |
... |
... |
... |
... |
... |
... |
|
1968 |
... |
... |
... |
... |
... |
... |
... |
... |
... |
... |
... |
... |
|
|
1966 |
4.60 |
... |
... |
... |
... |
... |
... |
... |
... |
... |
... |
... |
|
|
Spain |
1967 |
... |
... |
... |
... |
... |
... |
... |
... |
... |
... |
... |
5.10 |
|
1968 |
... |
... |
... |
... |
... |
... |
... |
... |
... |
... |
... |
... |
|
|
1966 |
5.50 |
... |
... |
... |
... |
6.00 |
... |
... |
... |
... |
... |
... |
|
|
Sweden |
1967 |
... |
5.50 |
5.00 |
... |
... |
... |
... |
... |
... |
... |
... |
6.00 |
|
1968 |
... |
5.50 |
... |
... |
... |
... |
... |
... |
... |
5.00 |
... |
... |
|
|
1966 |
2.50 |
... |
... |
... |
... |
... |
3.50 |
... |
... |
... |
... |
... |
|
|
Switzerland |
1967 |
... |
... |
... |
... |
... |
... |
3.00 |
... |
... |
... |
... |
|
|
1968 |
... |
... |
... |
... |
... |
... |
... |
... |
... |
... |
... |
||
|
1966 |
7.50 |
... |
... |
... |
... |
... |
... |
... |
... |
... |
... |
... |
|
|
Turkey |
1967 |
... |
... |
... |
... |
... |
... |
... |
... |
... |
... |
... |
|
|
1968 |
... |
... |
... |
... |
... |
... |
... |
... |
... |
... |
... |
... |
|
|
1966 |
6.00 |
... |
... |
... |
... |
... |
7.00 |
... |
... |
... |
... |
... |
|
|
United Kingdom |
1967 |
6.50 |
... |
6.00 |
... |
5.50 |
... |
... |
... |
... |
6.00 |
8.00 |
... |
|
1968 |
... |
... |
7.50 |
... |
... |
... |
... |
... |
7.00 |
... |
... |
... |
|
|
1966 |
4.50 |
... |
... |
... |
... |
... |
... |
... |
... |
... |
... |
... |
|
|
United States† |
1967 |
... |
... |
... |
4.00 |
... |
... |
... |
... |
... |
... |
4.50 |
... |
|
1968 |
... |
... |
5.00 |
5.50 |
... |
... |
... |
5.25 |
... |
... |
... |
5.50 |
...Rate unchanged.
†Federal Reserve Bank of New York rate.
Sources:
(1) Reports of Central Bank of Ireland;
(2) International Financial Statistics (published by International Monetary Fund);
(3) U.S. Federal Reserve Bulletin (published by U.S. Federal Reserve System).
Could the Minister say is there any proposal to change the rate in this country in consequence of the recent change in the Bank of England rate?
That is a matter which is receiving active consideration.
By whom? What about the banks? Will they have no say in it?
Too much say.
Do we take it that the Minister will determine whether there is to be an increase?
What I have said is that the matter is receiving active consideration by me at the moment.
Have representations been made to the Minister by the banks?
Always, when the Bank of England rate is changed, discussions are held, sensible mature discussions between the Minister for Finance, the Central Bank and the commercial banks and we endeavour between us to decide what is the best for this country in view of all the circumstances obtaining. Deputies will realise that we do not always follow automatically the change in the British rates. Sometimes we follow partially and sometimes we do not. We try to decide, in the light of all the circumstances—the necessity to maintain our own savings at home in the form of deposits and so on—what change we should make.
Is there a joint decision between the Minister and the banks?
The statutory decision on the re-discount rate is, of course, for the Central Bank. The general question is a matter for sensible and mature discussion between all concerned.
Is the Minister aware of the fact that the British Government increased the bank rate to discourage private lending by the banks or to bring back the charges as requested by the British Government?
What motivates the British Government to do things or not to do them is not for me to decide.
I hope the Minister will take that into account when he is making his decision.