§ Mr. Austin MitchellTo ask the Chancellor of the Exchequer what is the Government's assessment of the economic role of interest rates.
§ Mr. NelsonIt is the role of monetary policy to deliver low inflation. As monetary policy influences inflation with a lag, interest rate decisions are based on an assessment of the prospects for underlying inflation in one to two years' time.
§ Mr. Austin MitchellTo ask the Chancellor of the Exchequer to what extent he expects the rises in interest rates in the current year will benefit the economy.
§ Mr. NelsonMy right hon. Friend's decisions this year to increase interest rates will help to ensure that inflation is kept under control and the current healthy recovery is sustained.