HC Deb 06 November 1962 vol 666 cc39-40W
31. Sir C. Osborne

asked the Chancellor of the Exchequer, in view of the fact that Bank Rate has been reduced from 7 per cent. to 4½ per cent. following improvements in the nation's financial position, if he will now take steps to reduce the long-term interest rates for which Her Majesty's Government are responsible; and if he will make a statement.

Mr. Maudling

There is no direct or invariable relationship between Bank Rate and long-term interest rates. In fact, the yield on long-term Government securities has fallen since July, 1961, by nearly 1 per cent. The rates charged by the Public Works Loan Board, and those of other Government lending have been reduced in step.