HC Deb 26 January 1989 vol 145 cc682-3W
28. Mr. Speller

To ask the Chancellor of the Exchequer whether he will take steps to reduce bank interest rates and the mortgage interest rates.

Mr. Lilley

I refer my hon. Friend to the answer that I gave earlier today to the hon. Member for Tooting (Mr. Cox).

32. Mr. Matthew Taylor

To ask the Chancellor of the Exchequer if he will make a statement on his Department's estimate of the future level of interest rates and mortgage rates in the next three months.

Mr. Lilley

Interest rates will remain as high as they need be, for as long as necessary, to bring inflationary pressures hack under control. Mortgage rates are a matter for lenders to decide.

55. Mr. Latham

To ask the Chancellor of the Exchequer whether he will make a statement on the current level of interest rates.

57. Mr. Dunnachie

To ask the Chancellor of the Exchequer if he will make a statement on the current level of interest rates.

67. Mr. McAvoy

To ask the Chancellor of the Exchequer if he will make a statement on the current level of interest rates.

Mr. Lilley

Bank base rates are 13 per cent.

66. Mr. Kennedy

To ask the Chancellor of the Exchequer if he will assess the impact of current levels of interest rates on the economy.

Mr. Lilley

Higher interest rates will take some time to have their full effect, but there are already some clear signs that economic growth is moderating to sustainable rates. Higher interest rates encourage saving and discourage borrowing.

98. Mr. Wigley

To ask the Chancellor of the Exchequer on how many occasions during the past 12 months he has increased interest rates; what is the total increase; and what is his assessment of the total resultant increase in annual interest payments within the United Kingdom economy.

Mr. Lilley

Bank base rates were moved 13 times in the last year, both up and down, and increased by 4 per cent. in total. The impact on total interest payments within the United Kingdom economy will be less than proportionate as long-term interest rates have moved much less than short-term rates.

101. Mr. Patchett

To ask the Chancellor of the Exchequer what is his estimate of the extra borrowing costs to industry incurred by a rise of 1 per cent. in interest rates.

128. Mr. Morley

To ask the Chancellor of the Exchequer what is his estimate of the extra borrowing costs to industry incurred by a rise of 1 per cent. in interest rates.

Mr. Major

The cost to industrial and commercial companies of a one percentage point rise in United Kingdom short-term interest rates maintained for a full year is estimated to be about £400 million.