• Short Summary

    THE NATIONAL BANK RATE IN BRITAIN WAS RAISED TODAY (MONDAY) FROM FIVE TO SEVEN PER CENT.

  • Description

    1.
    LS STOCK EXCHANGE
    0.04

    2.
    MS DITTO
    0.07

    3.
    LS INT. STOCK EXCHANGE
    0.11

    4.
    MS DITTO
    0.16

    5.
    MCS NEWS VENDOR WITH PAPER SHOWING HEADLINE "BANK RATE 7%"
    0.22

    6.
    MS MR. CALLAGHAN WALKING ACROSS COURTYARD
    0.26

    7.
    CS SIGN "FIRST LORD OF THE TREASURY"
    0.30

    8.
    CS MR. CALLAGHAN SOF
    1.58


    TRANSCRIPT: SEQ. 8: CALLAGHAN: I THINK THERE HAS BEEN A SPECULATIVE RUN ON STERLING BY PEOPLE WHO HAVE BEEN PROMPTED TO BELIEVE THAT WE COULDN'T MAINTAIN THE PARITY. THIS ACTION WILL CONVINCE THEM THAT WE INTEND TO, AND THAT WE ARE DOING SO.



    INTERVIEWER: WHAT, IN YOUR VIEW, HAS LED TO THIS DRAIN ON STERLING ?



    CALLAGHAN: I THINK THAT'S A VERY DIFFICULT THING TO SAY. THERE'S BEEN A LOT OF DISCUSSION IN NEWSPAPERS AND ABOARD ABOUT A LOT OF THINGS THAT I HADN'T SEEN UP TO A FEW WEEKS AGO AND I THINK THAT ALL THAT ADDED TOGETHER HAS MADE FOR SPECULATION, BUT I'M GLAD TO SAY THAT ACCORDING TO EARLY REPORTERS, MUSN'T GO TOO FAR, SOME OF THE SPECULATORS MAY HAVE CAUGHT A BIT OF A COLD.



    INTERVIEWER: MR. MAUDLING (OPPOSITION SPOKESMAN ON ECONOMIC AFFAIRS) SAID IN THE HOUSE THIS AFTERNOON THAT THIS CLEARLY DERIVES FROM RECENT ACTION OF THE GOVERNMENT. WHAT DO YOU SAY TO THAT ?



    CALLAGHAN: I SHOULD THINK THAT REMARKS IS THE PRODUCT OF A BAD CONSCIENCE ABOUT THE LAST TWELVE MONTHS. I HAVE NO DOUBT AT ALL IN MY MIND THAT IF ACTION HAD BEEN TAKEN FAR EARLIER THIS SUMMER WE WOULD NOT HAVE INHERITED THE SITUATION WE DID. I BELIEVE IT WAS THE INTENTION OF THE CONSERVATIVE PARTY TO HAVE AN ELECTION MUCH EARLIER. IF THEY HAD HELD THAT ELECTION MUCH EARLIER THEN REMEDIAL ACTION COULD HAVE BEEN TAKEN THEN.



    INTERVIEWER: ABOUT TAKING IT EARLIER, IT HAS BEEN SAID IN A GOOD MANY CITY COLUMNS THAT YOU MIGHT HAVE DONE THIS LAST THURSDAY AND THE SITUATION TODAY MIGHT NOT BE AS SERIOUS AS IT IS. HOW WOULD YOU RESPOND TO THAT ?



    CALLAGHAN: I WOULD SAY THAT YOU'VE GOT TO JUDGE THE SITUATION DAY BY DAY. IN FACT WHAT I'VE DONE IS NOT TO TAKE IT LAST THURSDAY BUT I'VE TAKEN IT IN ADVANCE OF NEXT THURSDAY.




    Initials DE/V-B-TELE/BHH/PN



    Script is copyright Reuters Limited. All rights reserved

    Background: THE NATIONAL BANK RATE IN BRITAIN WAS RAISED TODAY (MONDAY) FROM FIVE TO SEVEN PER CENT. THIS MOVE WAS MADE BY THE BRITISH GOVERNMENT IN AN EFFORT TO STRENGTHEN THE INTERNATIONAL POSITION OF THE POUND STERLING.

    THE BANK RATE AFFECTS THE INTEREST CHARGE FOR DOMESTIC BORROWING IN BRITAIN. IT LAST STOOD AT SEVEN PER CENT IN 1961, BUT FEEL GRADUALLY UNTIL IN JANUARY 1963 IT STOOD AT FOUR PER CENT. IT WAS RAISED TO FIVE PER CENT IN FEBRUARY THIS YEAR.

    THE ANNOUNCEMENT CAME AS A SURPRISE TO MANY BANKERS AS BANK RATE CHANGES IN BRITAIN ARE TRADITIONALLY MADE ON THURSDAYS. BUT THE RESULT HAS BEEN AN IMMEDIATE STRENGTHENING OF THE POSITION OF STERLING ON EUROPEAN MARKETS.

    THE GOVERNMENT'S MOVE WAS EXPLAINED BY THE CHANCELLOR OF THE EXCHEQUER, MR. JAMES CALLAGHAN:

  • Tags

  • Data

    Film ID:
    VLVA7YQUS7CV3VKSW7GGJLQB60ITD
    Media URN:
    VLVA7YQUS7CV3VKSW7GGJLQB60ITD
    Group:
    Reuters - Source to be Verified
    Archive:
    Reuters
    Issue Date:
    23/11/1964
    Sound:
    Unknown
    HD Format:
    Available on request
    Stock:
    Black & White
    Duration:
    00:01:30:00
    Time in/Out:
    /
    Canister:
    N/A

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