HC Deb 05 November 1986 vol 103 c465W
29. Mr. Pike

asked 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. Pattie

An 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.