§ Mr. Austin MitchellTo ask the Chancellor of the Exchequer what account the Government's monetary and exchange rate policies take of the role of the exchange rate as a market-clearing mechanism; and what assessment he has made of how the equilibrium rate is related to the current account of the balance of payments.
§ Mr. NelsonMovements in the exchange rate are considered as part of the general assessment of monetary conditions in setting monetary policy. The current account of the balance of payments is affected by a large number of factors, including world trade, growth in United Kingdom export markets, export profit margins, domestic demand and competitiveness. The current account is only one of many factors which can affect the exchange rate.