Minimum Lending Rate

HC Deb 04 June 1981 vol 5 cc397-8W

22. Mr. Jay

asked the Chancellor of the Exchequer whether he now proposes to ensure a reduction in minimum lending rate.

Sir Geoffrey Howe

The timing of changes in minimum lending rate will depend on continued progress in reducing inflation and on monetary and financial developments.

31. Mr. Trippier

asked the Chancellor of the Exchequer what is his assessment of the outlook for mimimum lending rate over the next 12 months.

Sir Geoffrey Howe

It is not the practice to forecast interest rate movements. Further reduction in interest rates must depend on further progress in reducing inflation and monetary growth.

35. Mr. Latham

asked the Chancellor of the Exchequer whether he will list the specific factors currently preventing a further reduction in minimum lending rate.

Sir Geoffrey Howe

I described in my Budget Statement the factors which influence decisions about short-term interest rates. Further reductions in interest rates must depend on further progress in reducing inflation and monetary growth.