§ Mr. JackTo ask the Chancellor of the Exchequer, pursuant to his oral statement of 20 May,Official Report, column 508, (1) what is his definition (a) descriptively and (b) numerically of price stability; [1861]
(2) over what time scale the Bank of England will be expected to achieve new inflation targets when they are set. [1870]
182W
§ Mrs. Liddell[holding answer 2 June 1997]: The Chancellor will set out the Government's approach to monetary policy in his Mansion House speech on 12 June.
§ Mr. JackTo ask the Chancellor of the Exchequer, pursuant to his oral statement of 20 May,Official Report, column 508, what factors could prejudice the Bank of England's ability to achieve price stability whilst supporting the Government's economic policy. [1862]
§ Mrs. Liddell[holding answer 2 June 1997]: The Government believe that low inflation is an essential precondition for high and stable levels of growth and employment. However, as we have seen over the past 18 years, excessively loose monetary policies have encouraged short but unsustainable booms, followed by higher inflation, recessions and unemployment. The Chancellor will set out the Government's approach to monetary policy in his Mansion House speech on 12 June.