§ 11. Mr. Hordernasked the Chancellor of the Exchequer if he is satisfied with the operation of the policy of competition and credit control; and if he will make a statement.
§ Mr. Patrick JenkinSince September 1971 there has been a welcome increase in competition and innovation in the banking sector. This has led to structural changes which have complicated the interpretation of monetary statistics. But the new system of credit control, though no doubt capable of further refinement, has throughout been operated flexibly both in conditions requiring monetary ease and in circumstances where monetary restraint is more appropriate.
§ Mr. HordernDoes my hon. Friend agree that, contrary to what the right hon. Member for Leeds, East (Mr. Healey) has said on the previous Question, it is not the system of competition and credit control that itself feeds inflation but the growth of the money supply? Will my hon. Friend say when he expects the rate of growth of the money supply to diminish?
§ Mr. JenkinMy hon. Friend will have seen the figures which were published on Monday, which show that the increase in the M3 measurement was only three-quarters of 1 per cent. That represents a substantial slowing down of the rates earlier in the year.