§ 29. Mr. Pikeasked the Secretary of State for Trade and Industry what assessment he has made of the implications of the latest increase in interest rates for the output of manufacturing industry.
§ Mr. PattieAn increase in interest rates of 1 percentage point costs industry £250 million a year, compared with the cost of a similar increase in wages of £1 billion a year. Since the Budget, however, interest rates have fallen by 1.5 percentage points. This can only benefit manufacturing output and investment.