§ 73. Sir C. Osborneasked the Chancellor of the Exchequer if he will reduce the 7 per cent. Bank Rate since it has proved ineffective in checking home consumption in view of the fact that the hire-purchase debt rose a further £6 million in December to £1,115 million, a rise of £156 million in the year; what new measures he proposes to take to reduce home consumption; and if he will make a statement.
§ Mr. CallaghanI will reduce the Bank Rate as soon as I judge the state of the economy will permit: in making that judgment I should not, however, rely solely, or even mainly, on the movement of hire-purchase debt. The Bank Rate is of course only one of a number of measures which have been taken to keep home demand within proper limits, and further measures will be taken if and when it becomes appropriate to do so.
§ Sir C. Osborneasked the Chancellor of the Exchequer, in view of the fact that the extra 2 per cent. on the Bank Rate is costing over £60 million a year more in interest on the £1,932 million foreign 145W current and deposit accounts and the £1,196 million Treasury bills held overseas, thus making the balance of payments worse, if he will reduce the rate immediately to 5 per cent.; and if he will make a statement.
§ Mr. CallaghanNo. I do not accept the hon. Gentleman's calculations. I have no statement to make about Bank Rate.