§ Sir Thomas ArnoldTo ask the Chancellor of the Exchequer what weight he gives to his monitoring range of 4 to 8 per cent. for broad money; and what are the consequences for the economy for a fall in the annual growth in M4 to below the bottom of the range.
§ Mr. NelsonBroad money—M4—is one of the indicators taken into account in conducting monetary policy and setting interest rates. The monitoring range has been set at a level which is believed to be consistent with progress towards the Government's inflation objectives. The recent fall in M4's 12-month growth rate to below the lower limit on the monitoring range was one of the reasons for the decision to cut interest rates on 26 January.