§ 34. Sir C. Osborneasked the Chancellor of the Exchequer in view of the facts that confidence has been restored in sterling, that there is now no possibility of devaluation, and that overseas hot money adds nothing permanently to Great Britain's economic stability, if he will now reduce the Bank Rate; and if he will make a statement.
§ Mr. CallaghanI can make no statement about future changes in Bank Rate.
§ Sir C. OsborneIs the Chancellor aware that some small traders who are worst hit by a high Bank Rate are having to pay up to 15 per cent. for loans? Does not he think that the present rate has lasted long enough? Why not bring it down?
§ Mr. CallaghanI can only repeat my original Answer.
§ 35. Sir C. Osborneasked the Chancellor of the Exchequer why he approved the forthcoming issue of £500 million 6 per cent. Exchequer Stock 1970 at 99 per cent.; to what extent his policy is a continuance of the high Bank Rate for an indefinite period; if he will take steps to carry out a cheaper money policy; and if he will make a statement.
§ Mr. CallaghanThe terms of this stock issue were fixed in the light of current market conditions.
§ Sir C. OsborneDoes this mean that we are to have a high Bank Rate for ever? Will the right hon. Gentleman go down as the patron saint of the Shylocks and moneylenders?
§ Mr. CallaghanThe hon. Gentleman knows that it is not the custom to make statements about the Bank Rate and I do not propose to break that custom.