§ 83. Mr. Geraint HowellsTo ask the Chancellor of the Exchequer what has been the cost to industry of the rise in base rates since April 1988; and if he will make a statement.
§ Mr. Norman LamontIt is not possible to answer this question with any acceptable degree of precision. It would depend on how industry reacted to the interest rate changes themselves and any changes in borrowing for other reasons. The costs to British industry of high inflation are far greater than the costs of higher interest rates. Tight monetary policy will ensure that inflation is brought down.