83 and 84. Mr. Edward M. Taylorasked the Chancellor of the Exchequer (1) why he authorised the Bank of England to issue a new Treasury loan with interest at 8½ per cent. at a price of £96 5s. per cent. and with a minimum maturity period of 10 years;
(2) if he will review his policy of permitting the Bank of England to raise medium-and long-term loans when interest rates are at the present levels.
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§ Mr. TaverneTerms and timing of new issues are determined by considerations of monetary and debt management policy, which my right hon. Friend keeps constantly under review. He authorised the issue of 8½ per cent. Treasury loan 1980–82 to provide a stock into which holders of 3 per cent. Savings Bonds 1960–70, maturing on 1st September, 1970, could convert; and to enable the authorities to continue to meet public demand for Government stock.