§ 5. Mr. Martenasked the Chancellor of the Exchequer what has been the number of months since October, 1964, in which Bank Rate has been at 7 per cent. or higher.
§ Mr. Harold LeverSince October, 1964, Bank Rate has been at 7 per cent. or higher for a total of approximately 20 months.
§ Mr. MartenIs the Minister aware that Bank Rate has never been so high for so long since 1694, when records were first kept? In the light of the Labour Party's statement at the last election, about the level of interest rates, would the Government deal with this rather "grotty" performance when it has its confessional in the autumn?
§ Mr. LeverI do not recall the reference to incidents of 1694 in the Labour Party's election manifesto. On the other hand, our rates have to keep in line with world rates, and world rates 216 are at a pretty high level, historically speaking.
§ Sir C. OsborneIs the Minister aware that one of the consequences of this continued high Bank Rate is that the 3½ per cent. War Loan, £2,000 million of which is held by ordinary people, stands at its lowest ever, 46 per cent., and unless Bank Rate is reduced the holders of Government stock will continue to be swindled? Will he do something to help?
§ Mr. LeverIt is a logical corollary of an increase in interest rate that the value of unredeemable stock will decline correspondingly. We are anxious to see interest rates throughout the world come down, but ours cannot go out of line, and we can only have more freedom for action when our balance of payments has been put right.