§ 38. Mr. Benceasked the Chancellor of the Exchequer what has been the percentage fall in the internal purchasing power of the £ sterling since the Bank rate was last increased.
§ The Economic Secretary to the Treasury (Mr. R. Maudling)Four per cent. between March, 1952, and January, 1953. This figure is based on the Interim Index of Retail Prices of the Ministry of Labour.
§ Mr. BenceIs the hon. Gentleman aware that it will come as a tremendous shock to most people in this country to learn that the internal purchasing power of the pound has fallen by 4 per cent. while the bank rate has been increased, because many people will get the impression that the policy of the Government is to make money more valuable for those who live by lending it and less valuable for those who live by earning it?
§ Mr. MaudlingIf it had not been for the monetary policy of my right hon. Friend, the increase in the Index of Retail Prices, which was six points in 1952, might have been nearer the rise of 13 points in 1951.