§ Mr. Nicholas Wintertonasked the Chancellor of the Exchequer what have been the increases in the levels of domestic credit for each month since May 1979 ; and if he will make a statement on the implications of the figures in relation to his policy to reduce inflation.
§ Mr. LawsonFigures for domestic credit expansion are available in table 7.3 ofFinancial Statistics—the latest issue is that for May 1980.
We made it clear in the Green Paper on monetary control that we intend to 200W monitor domestic credit expansion. But it is money supply growth, not DCE, that is crucial for bringing down inflation. Our monetary target relates to £M3.