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FEDERAL RESERVE BANK OF NEW YORK Circular No. 8 7 5 7 February 15. 1980 DISCOUNT RATES To A ll Member Banks, and Others Concerned, in the Second Federal Reserve District: 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 13 percent from 12 percent, effective today, February 15, 1980. Following is the text of a statement issued today by the Board of Governors: The Federal Reserve Board today approved an increase in the discount rate from 12 percent to 13 percent, effective im mediately. The discount rate is the interest ra te that m em ber banks are charged when they borrow from their district Federal Reserve Banks. The Board has been particularly concerned th at recent economic developments, including the large increase in the price of im ported oil. are adding to inflationary pressures and may lead to fu rth er destabilizing pricing decisions. These developments underscore the need to take such m easures as may be required to m aintain firm control over grow th of money and credit. In m aking the change, the Board acted on requests from the directors of the Federal Reserve Banks of New York, Cleveland and San Francisco. Enclosed is a copy of this Bank’s Operating Circular No. 13, regarding discount rates. T h o m a s M. T i m l e n , F irst Vice President. * f e d e r a l Re s e r v e b a n k o f N ew Y ork [ O p e r a t i n g C ir c u l a r N o . 1 3 "] R ev ised F e b r u a r y IS , 1980 J DISCOUNT RATES To A ll Member Banks, and Others Concerned, in the Second Federal Reserve District: 1. This Bank has established the following new rates, effective February 15, 1980: A rate of 13 percent per annum on advances to, and discounts for, member banks under sections 13 and 13a of the Federal Reserve Act, and on advances under section 10(b) of the Act if secured by mortgage loans on one-family to four-family resi dences. A rate of 13 y2 percent per annum on advances to member banks under section 10(b) of the Federal Reserve Act, except as otherwise indicated herein. A rate of 14 percent per annum on advances to member banks for prolonged periods and in significant amounts under section 10(b) of the Federal Reserve Act, except advances secured by mortgage loans on one-family to four-family residences. A rate of 16 percent per annum on advances to individuals, partnerships, and corporations other than member banks under the last paragraph of section 13 of the Federal Reserve Act. Shown on the reverse side is the schedule of rates now in effect at this Bank on advances and discounts made under the Federal Reserve Act. 2. This circular supersedes our Operating Circular No. Revised effective October 8 , 1979. T 13, M. T i m l e n , First Vice President. hom as ( ov er ) Rate Schedule, E ffective February 15, 1980 Percent Per A nnum Advances to and discounts for m em ber 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 in significant amounts under section 10(b) of the Federal Reserve Act, except advances secured by mortgage loans on one-family to four-family residences ......... Advances to individuals, partnerships, and corporations other than m em ber banks: Advances under last paragraph of section 13 of the Federal Reserve Act ..................................................... 13 13^4 14 16
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