HC Deb 31 July 1984 vol 65 c185W
58. Mr. Penhaligon

asked the Chancellor of the Exchequer if he will estimate the effect on unemployment of the recent changes in interest rates.

Mr. Peter Rees

Estimates of the effect of interest rates on output and employment would require that the duration of any change in interest rates and other factors affecting market expectations and behaviour be precisely specified, and would be subject to very large margins of error.

59. Mr. Willie W. Hamilton

asked the Chancellor of the Exchequer if he will make a statement on the likely effects on unemployment of the recent increase in interest rates.

Mr. Deakins

asked the Chancellor of the Exchequer if he will make a statement about the impact of the rising level of real interest rates on the economy; and if he will make a statement.

Mr. Peter Rees

The effect of the recent increase in interest rates on output and unemployment will depend on the duration of the current level of interest rates and on other factors affecting market expectations and behaviour.