§ Mr. Austin MitchellTo ask the Chancellor of the Exchequer what was the average level of real interest rates, mimimum lending rate, in each year since 1978.
§ Mr. MaplesThere is no agreed definition of the real interest rate, nor is mimimum lending rate any longer in continuous use. The table shows the annual average of the three-month interbank rate since 1978 and the average three-month interbank rate deflated by the 12-month all-items retail price index for each year.
Average three-month interbank rate 'Real' interest rate 1978 9.24 +0.9 1979 13.67 +0.2 1980 16.62 -1.0 1981 13.92 +1.8 1982 12.28 +3.4 1983 10.13 +5.3 1984 9.95 +4.7 1985 12.24 +5.8 1986 10.95 +7.3 1987 9.70 +5.3 1988 10.31 +5.2 1989 13.89 +5.6 1990 14.77 +4.8