HC Deb 24 November 1983 vol 49 cc290-1W
27. Mr. Wainwright

asked the Chancellor of the Exchequer whether he intends to set a target range for the percentage growth of the MO measure of money.

Mr. Ian Stewart

This is something we will be considering when deciding the details of the medium term financial strategy at Budget time. As my right hon. Friend explained in his speech at the Mansion House in October, MO, the wide monetary base, may have a more important part to play in future as an indicator of the growth of narrow money.

31. Mr. Alan Howarth

asked the Chancellor of the Exchequer if he will give the latest figures for the money supply.

Mr. Ian Stewart

The figures for banking October released last Thursday by the Bank of England show increases of 1.5 per cent. in M1 and £M3 and 1 per cent. in PSL2. In the current target period the growth of £M3 is just within the target range of 7 to 11 per cent.; PSL2 and M1 are rather above the top of the range. Since the summer, monetary growth on all three measures has slowed significantly compared with earlier in the target period.

41. Mr. Wrigglesworth

asked the Chancellor of the Exchequer what has been the real rate of increase in M3 in each of the last five years.

Mr. Ian Stewart

The following table shows the percentage rate of change in "real M3" and "real £M3"—that is, the aggregates deflated by the retail price index—in the last five calendar years and in the 12 months to mid-October 1983.

Percentage change
Real M3 Real £M3
1978 +5.7 +4.7
1979 -4.6 -4.4
1980 +3.7 +4.5
1981 *+7.1 *+1.1
1982 +6.0 +4.5
12 months to mid-October 1983 +5.5 +4.2

Note: M3 equals £M3 plus United Kingdom residents' foreign currency deposits.

* Adjusted for break in series.