HC Deb 03 March 1994 vol 238 cc875-6W
17. Mr. David Martin

To ask the Chancellor of the Exchequer when he last met the Governor of the Bank of England to discuss interest rates.

Mr. Kenneth Clarke

I meet the Governor regularly to discuss a range of economic and monetary issues, including interest rates.

Mr. Harry Greenway

To ask the Chancellor of the Exchequer what was the average rate of interest over each of(a) the past two years and (b) the average between February 1974 to May 1979; and if he will make a statement.

Mr. Nelson

(a) In 1992 the average level of interest rates was 9.6 per cent. In 1993 the average level of interest rates was 6 per cent. Between March 1992 and February 1994 the average level of interest rates was 7.4 per cent.

(b) Between February 1974 to May 1979 the average level of interest rates was 10½ per cent.

Interest rates are set to achieve the Government's inflation objectives. Base rates now stand at 5.25 per cent. and are among the lowest in the EC.

27. Mr. Clifton-Brown

To ask the Chancellor of the Exchequer how much British industry has saved from the reduction in interest rates in the last 18 months.

Mr. Portillo

United Kingdom base rates have fallen by 4¾ percentage points over the past 18 months. It is estimated that, when fully passed on, that will have reduced United Kingdom companies' interest bills by over £6 billion a year.