Minimum Lending Rate

HC Deb 26 June 1980 vol 987 cc255-6W

35. Mr. Straw

asked the Chancellor of the Exchequer what working assumptions are made by his Department of the effect upon the minimum lending rate of an increase in the public sector borrowing requirement equivalent to 1 per cent. of gross domestic product.

Mr. Lawson

The effect on interest rates of changes in the public sector borrowing requirement depends on the cause of the initial change in the PSBR and on the response of expectations. I refer the hon. Member to my reply of 19 June 1980.