§ Sir C. Osborneasked the Chancellor of the Exchequer why he authorised the issue of new Government stock at par, carrying 6½ per cent. interest, which is the highest on a British Government security, thereby more than doubling the interest burden on the national debt for 174W percentage rise for each grade from 1939 to 1951, from 1951 to 1964, and from 1939 to 1964.
§ Mr. MacDermotThe information is as follows:
this transaction, in view of the fact that a reduction of the Bank Rate to 4 per cent. would enable borrowing to be at 4½ per cent.; since the high Bank Rate is neither checking adequately domestic spending nor attracting foreign funds, if he will now reduce it to 4 per cent.; and if he will make a statement.
§ Mr. CallaghanThe terms of issue of the new Government stocks were fixed in accordance with normal practice in the light of current market conditions having regard not only to the coupon but also to the yield to redemption. I cannot anticipate future decisions about Bank Rate, which is only one among many factors affecting the rate of interest on Government stocks.