§ 18. Mr. Lathamasked the Chancellor of the Exchequer to what factors he attributes recent increases in sterling M3; and what effect he expects them to have on future levels of inflation.
§ Mr. LawsonAccelerated borrowing to take advantage of 1984–85 level of investment allowances was clearly a major factor in the erratic increase in £M3 in April. MO remains well on track. I expect inflation to resume its downward path in the second half of the year.
§ Mr. LathamIn view of that reply, would the birds fall from the trees if we stopped publishing monthly figures straight away—at once?
§ Mr. LawsonI am not sure whether any birds would fall from the trees, but I am sure that I would be widely attacked, not least by my right hon. Friend the Member for Worthing (Mr. Higgins) for obscurantism of the worst sort if we ceased to publish figures. Even if we did not publish them, we would continue to be guided by them, among other statistics.
§ Mr. SedgemoreDoes the right hon. Gentleman agree with Mr. Coleby, of the Bank of England, who said to the Select Committee on the Treasury yesterday that our domestic monetary arrangements are out of control?
§ Mr. LawsonI do not think that Mr. Coleby said that—
§ Mr. SedgemoreYes, he did.
§ Mr. LawsonIf he said that, I totally disagree with him.