Interest Rates

HC Deb 14 July 1988 vol 137 c304W

22. Ms. Mowlam

To ask the Chancellor of the Exchequer how many interest rate changes have there been since the Budget.

Mr. Lilley

There have been eight changes in base rates since the Budget.

28. Mr. Cryer

To ask the Chancellor of the Exchequer what has been the estimated cost to the Government of the last increase in interest rates.

Mr. Lilley

Interest rates were raised in order to maintain downward pressure on inflation. Lower inflation improves Government finances in the medium term.

30. Mr. Macdonald

To ask the Chancellor of the Exchequer whether he will make a statement on the level of interest rates in the United Kingdom and other Group of Seven countries.

Mr. Lilley

The table shows the level of bank base rates in the United Kingdom, and the nearest equivalent rates in the other Group of Seven countries.

Country	Type of rate	Bank rate Per cent.
United Kingdom	Bank base rate	10
United States	Major bank's prime rate	9
Japan	Central bank discount rate	2½
West Germany	Central bank discount rate	3
France	1st category paper rate	6¾
Italy	Central bank discount rate	12½
Canada	Commercial bank rate	8¾

32. Mr. Ted Garrett

To ask the Chancellor of the Exchequer how many interest rate changes there have been in the last six weeks.

48. Mr. Martlew

To ask the Chancellor of the Exchequer how many interest rate changes there have been in the last six weeks.

Mr. Lilley

Bank basic rates have changed five times in the last six weeks.