HC Deb 09 December 1958 vol 597 c201
41. Mr. Cronin

asked the Chancellor of the Exchequer if, having regard to the present level of the gold and dollar reserve and to the imminence of a seasonally favourable period for sterling, he will expedite measures to lower interest rates in the United Kingdom.

Mr. Amory

As regards short-term rates of interest, the hon. Member will have observed that Bank Rate has been reduced by 3 per cent. in the last nine months. Future policy in this field will remain flexible. As regards long-term rates, I have nothing to add to what I told the hon. Member on 2nd December.

Mr. Cronin

Will the right hon. Gentleman bear in mind that by previous standards a 4 per cent. Bank Rate is a high rate of interest and that nobody will believe that he wishes to reduce unemployment while that high rate of interest continues?

Mr. Amory

All I can assure the hon. Member is that policy will continue to he adjusted to the needs of the changing situation. As for opinions on the changing of rates, I leave it to the hon. Member to decide that matter for himself.