HC Deb 19 February 1929 vol 225 cc952-3
47. Lieut.-Commander KENWORTHY

asked the Chancellor of the Exchequer what is and has been the practice with regard to consultations by the Governor of the Bank of England with himself or his Treasury officials when it is proposed to alter the Bank Rate.

Mr. CHURCHILL

Decisions in regard to alteration of the Bank Rate are taken by the Bank of England on its sole responsibility. It has frequently been the practice of the Governor in post-War times to inform the Chancellor when a proposal to alter the rate is about to be considered.

Lieut.-Commander KENWORTHY

Am I to understand that this information is only given as a matter of courtesy?

Mr. CHURCHILL

I much prefer to stick to the wording of my answer.

Lieut.-Commander KENWORTHY

Has the right hon. Gentleman any means of insisting upon consultation?

Mr. CHURCHILL

I should not dream of giving an answer defining the relations between the Treasury and the Bank of England in reply to a supplementary question.

Lieut.-Commander KENWORTHY

Is there any secrecy about the matter?

Mr. CHURCHILL

There is no secrecy about the matter. For years the sole responsibility for alterations in the Bank rate has rested with the Governor and Court of the Bank of England.