§ 14. Mr. Dubsasked the Chancellor of the Exchequer what assessment he has made of the influence of domestic and other interest rates on recent changes in the exchange rate.
§ Mr. Bruce-GardyneIt is extremely difficult to identify the influence of the factors determining the exchange rate. There is no clear relationship between the exchange rate and domestic or foreign interest rates of the interplay between them. But I can tell the hon. Gentleman that the Government are committed to maintaining sound monetary conditions; and that a policy of aiming to depreciate the currency would never provide a solution to our economic problems.