§ Mr. Austin MitchellTo ask the Chancellor of the Exchequer what effect on the nominal exchange rate it646W was Her Majesty's Government's policy to engender in the decisions to increase the interest rates on (a) 12 September 1994, (b) 7 December 1994 and (c) 2 February; and if he will publish his estimate of the effect on real interest rates together with the export unit value of United Kingdom manufacturers as a percentage of the fourth quarter 1986 figure in dollar terms. [21413]
§ Mr. NelsonInterest rates are set in order to meet the Government's objective of permanently low inflation. Movements in the exchange rate are considered part of the general assessment of monetary conditions in setling monetary policy. The basis of all decisions on interest rates are fully set out in the published minutes of my right hon. and learned Friend the Chancellor of the Exchequer's meetings with the Governor of the Bank of England. Copies of the minutes are in the House of Commons Library. It is impossible to quantify effects of interest rate changes on real interest rates and export unit values.
§ Mr. Austin MitchellTo ask the Chancellor of the Exchequer if he will publish the evidence of overheating on which be based his decision in(a) September 1994, (b) December 1994 and (c) February 1995 to raise interest rates. [21403]
§ Mr. NelsonThe basis of all the interest rate decisions on my right hon. and learned Friend the Chancellor of the Exchequer is set out fully in the published minutes of his meetings with the Governor and in the Treasury's monthly monetary report, published on the same day as the meetings. Copies of these publications are in the House Library.