§ Mr. Nottasked the Chancellor of the money supply between the first quarters of 1976 and 1977 is implied by his objective of 12 per cent. money supply growth in the current financial year.
§ Mr. Denzil DaviesThe 12 per cent. figure relates to the underlying growth of the money supply, as measured by M3, during the financial year. This is an outcome which would be consistent with the Government's objectives for reducing inflation, rather than a rigid target. The growth from the end of the first quarter 1976 to the end of the first quarter 1977, as shown by the quarterly series, will be one measure of that underlying growth; the other two measures will be those shown by the banking month series for the periods of 12 banking months ending, respectively, in mid-March 1977 and in mid-April 1977.