§ 29. Mr. Denzil Daviesasked the Chancellor of the Exchequer what steps he intends to take to bring sterling M3 back to the announced target of 9 per cent.
§ Mr. LawsonMy right hon. and learned Friend has stated his intention to shift the emphasis of monetary control so that public expenditure and borrowing are strictly controlled and achievement of monetary targets requires less restraint on the private sector either in the form of high interest rates or taxes. The effects of the Budget will take time to come through, however, and it has already been necessary to counter the excessive monetary growth which the Government inherited. It was for this reason that my right hon. and learned Friend announced an increase in minimum lending rate to 14 per cent. on 12 June.