§ 23. Mr. Cockeramasked the Chanceller of the Exchequer if, in future, he will announce the figures for the growth in the money supply as a percentage figure measured over the same month in the preceeding year, in the same way as the retail price increase is measured and announced.
§ Mr. LawsonFigures for money supply growth over the preceding 12 months are available from the figures published each month. The growth in sterling M3 over the 12 months to mid-December, the latest such period for which figures are available, was 12.2 per cent.; the annualised rate of growth since the present target was set in June was 11.5 per cent. In general, year-on-year figures tend to obscure changes in the underlying trend of monetary growth.
§ 24. Mr. Hal Millerasked the Chancellor of the Exchequer what has been the increased cost so far, both to central Government and local authorities, on their borrowings as a result of the raising of the minimum lending rate from 15 to 17 363W per cent.; and by how much the money supply has been reduced thereby.
§ Mr. LawsonIt is not possible unambiguously to identify the extra interest cost, since both central and local government borrow in a range of markets, affected to differing extents by changes in MLR. Similarly, it is not possible to isolate the effects of the increase in MLR on monetary growth. However, my right hon. and learned Friend is convinced that the increase in MLR, and the other actions he took in November, were necessary to bring down the underlying rate of monetary growth. There are now grounds for hoping that they are having the desired effect.