§ 32. Mr. Eggarasked the Chancellor of the Exchequer what influence the level of United States interest rates is having on United Kingdom interest rates.
§ Mr. HayhoeThe level of United States interest rates is an important influence on our own. But the relationship is not a simple one. In January of this year, for example, United Kingdom market rates were 1 per cent. above comparable rates in the United States, whereas now they are 3 per cent. lower.
§ 44. Mr. Stoddartasked the Chancellor of the Exchequer if he will make a statement about the level of interest rates.
§ Mr. Bruce-GardyneWithin the last few days we have seen a welcome further fall of half a point in bank base lending rates, following the fall early in June. Base rates have now fallen by fully 4 percentage points since last autumn. We need to proceed cautiously, but I am confident that the right way to secure interest rates at levels lower still is to continue the progress which we have been making against inflation.