§ Mr. Murphy
asked the Chancellor of the Exchequer whether he is satisfied that his policies for the control of the money supply have been as effective as he had planned; and if he proposes any new measures to strengthen this control.
§ Mr. Bruce-Gardyne
Considerable progress has been made through implementation of the Government's medium term financial strategy in the reduction of inflation from a peak of 21.9 per cent. in May 1980 to 12 per cent. in January of this year.
As announced in the answer my right hon. and learned Friend gave to the hon. Member for Harlow (Mr. Newens) on 30 July, the new arrangements for monetary control, which were foreshadowed in his 1981 Budget speech, came into effect on 20 August. I am satisfied that these arrangements are operating satisfactorily.