HC Deb 08 July 1969 vol 786 cc1150-1
26. Mr. Biffen

asked the Chancellor of the Exchequer what plans he has to control gilt-edged prices in the light of current international interest rates.

Mr. Diamond

None, Sir. I see no reason for departing from the policies followed by the authorities in the management of the gilt-edged market.

Mr. Biffen

Has 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. Diamond

I am grateful for the information which the hon. Gentleman has given me.

Ms. Cant

Will 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. Diamond

I shall consider what my hon. Friend has put to me, as I always do.