§ Mr. Woofasked the Chancellor of the Exchequer what effect he expects the present trends of interest rates to have on his plans for steady growth of the economy, in industrial investment and money supply; and if he will make a statement.
§ Mr. DellInterest rate policy has to take account of a range of objectives in256W cluding the factors mentioned by my hon. Friend. For example, there are considerations such as the relationship to international interest rate levels. The recent reductions in United Kingdom rates have clearly been a move in the right direction for the growth of industrial investment and economic recovery. These reductions have been consistent with financing the public sector borrowing requirement without excessive growth of the money supply.