§ 19. Mr. Newensasked the Chancellor of the Exchequer if he will make a statement on the present level of interest rates.
§ Sir Geoffrey HoweBoth short and long-term interest rates have risen in the last month. But there have been some signs of easing this week and United Kingdom rates remain lower than those prevailing in the economies of many of our principal competitors. The House will recall that my Budget speech foreshadowed a number of changes in our system of monetary control, the principal objective being to allow the market a greater role in determining the structure of short-term interest rates. Recent developments have begun to show the way in which these arrangements will operate in practice. I expect the full system to come into operation on 20 August, the first day of banking September.