§ Mr. Austin MitchellTo ask the Chancellor of the Exchequer (1) what has been the accuracy of Bank of England forecasts of the effect on the balance of trade of increases in real interest rates over the past 12 months; [35257]
(2) what has been the accuracy of (a) the Bank of England and (b) the Treasury forecast of the effect on output and employment of the changes of interest rates of the last 12 months. [35258]
§ Mrs. Angela KnightForecasts of output, employment and the balance of trade depend on many factors. It is not possible to isolate the effect of changes in interest rates.