§ Mr. Austin MitchellTo ask the Chancellor of the Exchequer what annual rate of economic growth he regards as unsustainable in considering the case for higher interest rates and a higher exchange rate.
§ Mr. NelsonThere is no particular rate of economic growth which would trigger off change in interest rates. It is the role of monetary policy to deliver low inflation. Monetary policy decisions are based on an assessment of a range of monetary indicators and other data, in particular the growth of narrow and broad money and movements in the exchange rate and assets prices. Estimates of the extent of spare capacity in the economy are also taken into account. The minutes of the monthly meetings of the Chancellor and the Governor of the Bank of England to discuss monetary policy are now published. The latest minutes of the 8 June meeting were published on 20 July.