§ Mr. Knoxasked the Chancellor of the Exchequer what is his estimate, in the light of the current 19 per cent. annual rate of growth of sterling M3, of the likely rate of inflation in between 18 months and 30 months' time.
§ Mr. LawsonUnderlying monetary growth has been high in recent months due to a number of factors, including the uneven profile of the PSBR. But we have made it quite clear that we expect it to slow down over the remainder of the financial year, in which case there is unlikely to be any significant impact on inflation.