§ Mr. William Wellsasked the Chancellor of the Exchequer whether, in view of the suspension of Bank Rate, he will consider legislation to clarify the position under contracts where the payment of interest is fixed at a percentage over Bank Rate.
§ Mr. NottNo. The interpretation of "Bank Rate" in existing legal documents is a matter for the courts to decide. So far as new contracts are concerned, it will be for the parties to decide whether interest payments should be linked to the minimum lending rate of the Bank of England or to some other rate which they consider appropriate.