§ Mr. Austin Mitchellasked the Chancellor of the Exhequer whether interest is payable on special deposits with the Bank of England; and whether he will publish in the Official Report a table showing the average value of the special deposits with the bank in each of the past 10 years, together with the average rate of interest payable on Treasury bills during the period in each year when the deposits were in force.
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§ Mr. Wakeham[pursuant to his reply, 21 April 1982,c. 94]: Interest was paid on special deposits at a rate adjusted weekly to the nearest 1/16 per cent. per annum on the average discount rate fr Treasury bills issued at the latest weekly tender.
The attached table shows, for the years 1972 to 1979, the average value of special deposits held with the Bank of England on each monthly make-up day. For those years—1972 and 1979—where special deposits were required for part of the year only, the average is taken only over these months where they were required—that is one month in 1972 and 10 months in 1979. Special deposits have not been called since December 1979.
The table also shows the average, over the periods when special deposits were required, of the average rates of discount on allotment at the weekly Treasury bill tenders. Rates of discount are quoted for Treasury bills, rather than the equivalent rate of interest; and rates of discount were used in calculating the rates of interest payable on special deposits as explained above. This is therefore the basis of the figures in the table.
Figures for special deposits and average rates on allotment at Treasury bill tenders are published in the Bank of England Quarterly Bulletin.
Year Average value of special deposits for months when they were required Average rate on allotment at weekly Treasury hill tender over periods when special deposits were required (£ million) (per cent.) 1972 119 8.06 1973 921 9.31 1974 1,047 11.37 1975 963 10.19 1976 1,145 11.16 1977 1,062 7.63 1978 991 8.53 1979 659 13.30