HC Deb 28 April 1995 vol 258 cc729-30W
Mr. Austin Mitchell

To ask the Chancellor of the Exchequer what assessment he has made of the impact of increases in(a) interest rates and (b) exchange rates on the standard of living. [21404]

Mr. Nelson

Permanently low inflation provides the best environment for achieving sustained growth and higher living standards. Monetary policy is set to keep 369, if he will give the details of the breakdown of the figure of £191 million, by each financial year in which any significant part of that expenditure has or will occur. [21684]

Mr. Redwood

Details of possible barrage expenditure to 1997–98 are as follows:

underlying inflation within the Government's 1 to 4 per cent. target range and to bring it down into the lower half of this range by the end of the present Parliament. Movements in the exchange rate are taken into account, along with a range of indicators, when considering the prospects for underlying inflation.

Mr. Malcolm Bruce

To ask the Chancellor of the Exchequer what estimate he has made of the effects of a half point rise in official interest rates in the United Kingdom upon the trade-weighted value of sterling. [21430]

Mr. Nelson

Movements in the trade-weighted value of sterling depend on many factors beside interest rates and it is not possible to estimate the effect of any one factor with any degree of confidence. Interest rates are set to meet the Government's objective of permanently low inflation.

Mr. Austin Mitchell

To ask the Chancellor of the Exchequer what is Her Majesty's Government's assessment of the effect on the rate of inflation of raising interest and the exchange rate when the output of manufacturing industry approaches full capacity. [21301]

Mr. Nelson

Interest rates are set to keep underlying inflation within the Government's 1 to 4 per cent. target range and to bring it down into the lower half of this range by the end of the present Parliament.

Mr. Austin Mitchell

To ask the Chancellor of the Exchequer what assessment he has made of the impact of increases in(a) interest rates and (b) exchange rates on the standard of living. [21404]

Mr. Nelson

Permanently low inflation provides the best environment for achieving sustained growth and higher living standards. Monetary policy is set to keep underlying inflation within the Government's 1 to 4 per cent. target range and to bring it down into the lower half of this range by the end of the present Parliament. Movements in the exchange rate are taken into account, along with a range of indicators, when considering the prospects for underlying inflation.

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