§ Mr. Foulkesasked the Chancellor of the Exchequer if he will estimate the likely effect of the drop in mortgage interest rate on the year-on-year retail price index by May.
§ Mr. Peter Rees[pursuant to his reply, 26 March 1984]: It is estimated that the recently announced 1 per cent. cut in the mortgage interest rate will reduce the retail price index by 0.35 per cent., and will be fully reflected in the May index. This is an estimate of its direct effect, and does not take account of second round effects on this or any other components of the RPI.