§ Sir C. Osborneasked the Chancellor of the Exchequer, in view of the recent criticism from Germany of the 6 per cent. Bank Rate in the United Kingdom, and because of the harm it has done to the building industry and the heavy financial burden it has put on local authorities, if he will reduce it immediately to 5 per cent.; and what are the arguments against reducing it further.
§ Mr. BarberThe level of Bank Rate has to be determined after taking account of many factors, both internal and external, including the level of similar rates in other countries. It was after a broad review of all these considerations that my right hon. Friend approved the two recent moves which have brought Bank Rate to 5 per cent.