HC Deb 27 October 1988 vol 139 cc446-7
9. Mr. Knox

To ask the Chancellor of the Exchequer if he will make a statement on the economic outlook for the remainder of the current financial year.

Mr. Major

My right hon. Friend the Chancellor will be publishing a new forecast in the Autumn Statement next month.

Mr. Knox

Does my right hon. Friend agree that the present high interest rates will deflate the domestic economy? Is that wise, given that there are more than 2 million people out of work?

Mr. Major

As my hon. Friend is aware, unemployment has been falling rapidly and we expect it to fall still further. Of course high interest rates may be unwelcome to some but they are necessary to control inflation, and they will remain high for as long as is necessary.

Dr. Moonie

In view of the difficulty that the Treasury has in predicting the future, does the Minister agree that he might be well advised to add an astrologer to his special advisers?

Mr. Major

I am perfectly content with my present special adviser.