Full text of Federal Reserve Bank of New York Circulars : 8380. Discount Rates

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FEDERAL RESERVE BANK
OF NEW YORK
Circular No. 8380
June 30, 1978

DISCOUNT RATES
To A ll Member B an ks, and O th ers C oncerned,
in the S econ d F ederal R e s e r v e D istr ic t:

The directors of this Bank, with the approval of the Board of
Governors of the Federal Reserve System, have increased the Bank’s discount
rate to 7-1A percent from 7 percent, effective Monday, July 3, 1978.
Following is the text of a statement issued today hy the Board
of Governors of the Federal Reserve System:
The Board of Governors of the Federal Reserve System
today announced its approval of actions hy the directors of
8 Federal Reserve Banks, increasing the discount rate of
those hanks from 7 percent to 7-lA percent, effective
Monday, July 3Action was taken in recognition of increases that
have occurred recently in other short-term interest rates
and to bring the discount rate into closer alignment with
short-term rates generally.
The discount rate is the interest rate that member
hanks are charged when they borrow from their district
Federal Reserve Banks. The new rate is effective at the
Federal Reserve Banks of Boston, New York, Cleveland,
Richmond, Chicago, St. Louis, Dallas and San Francisco.
The new rate schedule for this Bank, effective July 3> 1978, is as
follows:
Percent
Per Annum

Advances to and discounts for member banks:

(a) Advances and discounts under sections 13 and 13a
of the Federal Reserve Act, and advances under
section 10(b) of the Act if secured by mortgage
loans on one-family to four-family residences......
(b) Advances under section 10(b) of the Federal
Reserve Act, except as otherwise provided in this
schedule ............................................................
(c) Advances for prolonged periods and for significant
amounts under section 10(b) of the Federal
Reserve Act, except advances secured by mortgage
loans on one-family to four-family residences........

7-1A
7 -3 /U

8 -1 A

Advances to individuals, partnerships, and corporations
other than member banks:

Advances under last paragraph of section 13 of the
Federal Reserve Act ........................................

1 0 -lA

A copy of this Bank’s Operating Circular No. 13, regarding discount
rates, will he sent to you on July 3.




P aul

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V olcker,

P residen t.




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