HC Deb 17 April 1986 vol 95 cc480-1W
16. Mr. Soames

asked the Chancellor of the Exchequer if he will make a statement on the level of interest rates.

Mr. Ian Stewart

Base rates have been reduced by 1½ per cent. since the Budget.

51. Mr. Austin Mitchell

asked the Chancellor of the Exchequer if he will give the real interest rate both short and long-term in the United Kingdom; and what information he has on such rates in West Germany and Japan.

Mr. Ian Stewart

There are many problems in measuring either pre-or post-tax real interest rates, though in the United Kingdom the yields on index linked gilts give a direct indication of long term pre-tax real interest rates. The yield on the 1996 index linked gilts is currently 4 per cent., and that on the 2,020 indexed gilt is 3½ per cent. There are no comparable instruments in West Germany or Japan.