Interest Rates

HC Deb 26 June 1989 vol 155 cc299-300W

Mr. McLeish

To ask the Chancellor of the Exchequer if he will give an estimate of the increased costs to British industry of each 0.5 per cent. increase in interest rates.

Mr. Lilley

The cost to industrial and commercial companies of a 0.5 per cent. increase in United Kingdom short-term interest rates maintained for a full year is estimated to be about £0.2 billion.