§ 39. Sir C. Osborne
asked the Chancellor of the Exchequer what is the estimated extra cost in interest charges per annum to foreign holders of sterling resulting from the increased Bank Rate from 5 per cent. to 7 per cent.; what proportion will go to the United States of America and thus make the dollar gap wider; and if he will make a statement.
§ Mr. MacDermot
The amount of additional interest paid to non-resident holders of sterling will depend on the level and composition of their holdings in the twelve months' period selected and on the extent to which the rates of interest earned are influenced by the change in Bank Rate. These factors cannot be predicted; nor can the period 211W for which the higher Bank Rate will operate.
§ Mr. Stratton Mills
asked the Chancellor of the Exchequer what arrangements were made to give journalists advance notice of the Government's intention to increase the Bank Rate; and if he will make a statement.