§ 57. Mr. Stokesasked the Chancellor of the Exchequer the rate of interest on Treasury Bills on 18th August; the rate of interest on 25th August; and the cause of the difference?
§ Sir J. SimonThe average rate of interest on Treasury Bills tendered for on 18th August was 15s. 7d., and the corresponding rate on 25th August was £3 14s. 5d. The cause is of course to be found in the temporary rise in short-term rates generally due to the change in the Bank Rate. As to this I gave a full explanation in the Budget Debate on Thursday last.
§ Mr. ThorneAre the rates of interest governed by the competition for Treasury Bills, or are they fixed?
§ Sir J. SimonI am afraid I cannot answer that question without notice.