§ Mr. Lawsonasked the Chancellor of the Exchequer, further to his forecast of the future course of the minimum lending rate, Official Report, 14th June, columns 1030–1, when he now expects the lending rate to be reduced.
§ Mr. Denzil DaviesIn his speech on 14th June, my center hon. Friend referred to market expectations a reported in the Financial Times, and he expressed the hope that interest rates would soon fall. But he has also made it clear on a number of occasions that movements in short 275W term interest rates will depend on development in domestic and external financial markets. Since the measures announced on 8th June, there has been some slight easing of short term interest rates; but the hon. Gentleman would not expect me to speculate on when market developments will make a reduction in the Bank of England's minimum lending rate appropriate.