§ Mr. Austin Mitchell
asked the Chancellor of the Exchequer if he will estimate the effect on the money 412W supply and the exchange rate over a period of 12 months of not funding the borrowing requirement at a rate of interest in excess of the equivalent to 6 per cent. for 20-year gilt-edged securities in proportion to the present yield curve.
§ Mr. Bruce-Gardyne
Any quantification of the effects would be subject to wide margins of error, because there is no direct historical experience of an attempt to raise finance at interest rates considerably below those ruling in the market.