Reserve Bank of Australia Annual Report – 1967 PUBLIC STATEMENTS

During the year, the following public statements relating to policy matters were issued by the Bank:

16th AUGUST 1966

Trading Bank Fixed Deposit Interest Rates: The Bank agreed to the trading banks reducing, as from 17th August 1966, interest rates on fixed deposits with periods to maturity of up to 18 months. The reductions restored a somewhat greater differentiation between rates payable for different periods to maturity; the Bank considered the new rates were consistent with the pattern of rates obtaining in other sections of the capital market.

1st DECEMBER 1966

Trading Bank Lending: The Term Loan Fund Accounts of major trading banks were to be increased by about $40m. of which about $25m. was to come from the Statutory Reserve Deposits of the banks and the balance from the banks' other assets before the end of December. The Statutory Reserve Deposit ratio was to be reduced by 0.5 per cent to 8.9 per cent—effective 6th December. These changes were intended to support the continuation of new term lending as part of the higher levels of bank lending generally.

14th MARCH 1967

Personal Loans: Approval was granted for trading banks to offer a range of personal loans to borrowers. The maximum interest rate that could be charged on a wholly unsecured personal loan, repayable by instalments, was 6 per cent per annum flat. Lower rates would apply where some security was available.

Designed by John Saxton, M.I.D.I.A., F.A.C.I.A.A., Sydney. Printed by John Sands Pty. Ltd., Sydney, Australia.