§ Baroness Noakes
asked Her Majesty's Government:
What assumptions underlie the Pre-Budget Report for interest rates in the United Kingdom, the United States, the euro-zone and Japan for each of the years 2004–05 to 2009–10. [HL1145]
§ The Parliamentary Under-Secretary of State, Department for Culture, Media and Sport (Lord McIntosh of Haringey)
As stated on page 199 of the Pre-Budget Report (Cm 6408), the interest rate assumption underlying the Treasury's public finance projections is based upon financial markets' expectations. This assumption is audited by the National Audit Office. The Treasury does not explicitly make projections of interest rates for the US, the euro-zone and Japan.