§ 47. Lieut.-Commander KENWORTHYasked 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. CHURCHILLDecisions 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 KENWORTHYAm I to understand that this information is only given as a matter of courtesy?
§ Mr. CHURCHILLI much prefer to stick to the wording of my answer.
§ Lieut.-Commander KENWORTHYHas the right hon. Gentleman any means of insisting upon consultation?
§ Mr. CHURCHILLI 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 KENWORTHYIs there any secrecy about the matter?
§ Mr. CHURCHILLThere is no secrecy about the matter. For years the sole 953 responsibility for alterations in the Bank rate has rested with the Governor and Court of the Bank of England.