§ 35. Mr. Alan Howarthasked the Chancellor of the Exchequer whether he is satisfied with the level of interest rates.
§ Mr. Ian StewartInterest rates have fallen back substantially from their July peak, and are now close to post-Budget levels which were the lowest for several years. But I should always like them to be as low as possible consistent with the needs of monetary policy.
§ 41. Mr. Maplesasked the Chancellor of the Exchequer what assessment he makes of the relationship between the size of the public sector borrowing requirement and the level of general interest rates.
§ Mr. Ian StewartA sustained reduction in the PSBR should contribute to a sustained reduction in the general level of interest rates. But there are other influences on interest rates, particularly in the short-term. For example, higher overseas rates will tend to increase the level of United Kingdom rates consistent with any particular level of the PSBR.