§ 26. Mr. Biffenasked the Chancellor of the Exchequer what plans he has to control gilt-edged prices in the light of current international interest rates.
§ Mr. DiamondNone, Sir. I see no reason for departing from the policies followed by the authorities in the management of the gilt-edged market.
§ Mr. BiffenHas the attention of the right hon. Gentleman been drawn to the Bank of England Quarterly Review which suggests that for the first quarter of this year the Government Broker had ceased to be a buyer of last resort for gilt-edged? Is the right hon. Gentleman aware that this is a welcome reform which will recommend itself to Professor Friedman?
§ Mr. DiamondI am grateful for the information which the hon. Gentleman has given me.
§ Ms. CantWill my right hon. Friend consider, in respect of the gilt-edged market, using not one Government broker, but a number of Government brokers, to reduce the psychological impact, and will he say whether, in his reorganisation of the gilt-edged market, he will buy out the private owners of gilt-edged generously and make it more of a professional market, as it is in the United States?
§ Mr. DiamondI shall consider what my hon. Friend has put to me, as I always do.