HC Deb 14 April 1988 vol 131 cc226-7W
40. Mr. Sean Hughes

To ask the Chancellor of the Exchequer what is his estimate of the effect of exchange rate intervention in the last 12 months on the rate of growth of United Kingdom monetary aggregates.

69. Mr. Illsley

To ask the Chancellor of the Exchequer what is his estimate of the effect of exchange rate intervention in the last 12 months on the rate of growth of United Kingdom moneatary aggregates.

Mr. Lilley

The impact of intervention on M0 is offset automatically by the Bank of England's daily money market operations. There is no simple relation between intervention and broad monetary growth. The Government's policy is to fund all intervention; that is, sterilise it. The published figures for February 1988 indicate that all intervention and other borrowing has been fully funded in the 12 months to that date.

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