HL Deb 15 June 1998 vol 590 c112WA
Baroness Miller of Hendon

asked Her Majesty's Government:

What has been the effect on:

  1. (a) employment;
  2. (b) the value of sterling;
  3. (c) exports;
  4. (d) industry and commerce generally;
of the five increases since May 1997 prior to the increase in interest rates imposed by the Bank of England on 4 June; and [HL2164]

What effect they predict the increase in interest rates imposed by the Bank of England on 4 June will have on (a) employment; (b) the value of sterling; (c) exports; (d) industry and commerce generally. [HL2165]

Lord McIntosh of Haringey

The increases in interest rates since May 1997 have been necessary to curb the inflationary pressures which had started to build up before the Government took office. Low inflation is a key element of economic stability, providing the essential platform for achieving the Government's aim of high and stable levels of growth and employment. Interest rate increases slow down economic activity, but it is not possible to estimate the precise quantitative effects with any degree of certainty.