§ 46. Mr. Lewisasked the Prime Minister whether the statement concerning prices, unemployment and the Bank Rate, made by the Minister of Works at 201 Caxton Hall, London, on 18th February, represents the policy of Her Majesty's Government.
§ The Prime MinisterMy right hon. Friend indicated that the Government's disinflationary policy was not intended to lead to a serious deflation or heavy unemployment; and that the Government's monetary policy would be flexible and would be directed to conditions as they might develop. That does not go beyond what has previously been said on behalf of the Government.
§ Mr. LewisThe Minister said also that the Government were interested in a high degree of unemployment but mentioned nothing about full employment. Is the Prime Minister not aware that he went on further to say that, in the event of unemployment growing, the Government would immediately cut the Bank Rate? In view of the fact that unemployment is growing, may we have some idea of when the Bank Rate will be cut?
§ The Prime MinisterI think that the hon. Gentleman has not given a quite accurate account of what my right hon. Friend said. All he said was that monetary policy ought to be flexible, which seems to be a very sensible doctrine.