Minimum Lending Rate

HC Deb 11 December 1980 vol 995 cc481-2W

46. Mr. Budgen

asked the Chancellor of the Exchequer when he intends to allow the level of minimum lending rate to be decided by rates of interest obtaining in London money markets.

Sir Geoffrey Howe

Following my statement to the House on 24 November, the Bank of England is to consider changes in its methods of intervention in the money markets which would allow the market a greater role in determining the structure of short-term interest rates. Operational details of these changes will be discussed with those institutions that will be affected, and it is intended that they will be put into effect by next spring.

Mr. Campbell-Savours

asked the Chancellor of the Exchequer how much he calculates industry will benefit as a result of the recent reduction in minimum lending rate; and if he will make an estimate of this benefit in money terms for industry as a whole.

Mr. Lawson

I shall let the hon. Member have a reply as soon as possible.