§ 13. Sir C. Osborneasked the Chancellor of the Exchequer, in view of the fact that Bank Rate has been reduced from 7 per cent. to 4½ per cent., what are the reasons for those long-term interest rates for which the Government are responsible remaining high; and what steps he is taking to reduce them.
§ Mr. Selwyn LloydLong-term interest rates are determined by a variety of factors, of which one of the most important is the pressure of demand for capital and there is no direct or invariable124W relationship between long-term interest rates and Bank Rate.