§ Mr. RedwoodTo ask the Chancellor of the Exchequer if he will make a statement about the level of interest rates needed now to create price stability in two years' time. [286]
§ Mrs. LiddellThe Chancellor judged it necessary to raise interest rates on 6 May by a percentage point, to 6i per cent., in order to put us back on track to achieve the Government's inflation target. He also decided to give operational responsibility to the Bank of England to set interest rates at the level necessary to meet the Government's inflation target.
§ Mr. RedwoodTo ask the Chancellor of the Exchequer what is his definition of price stability. [302]
§ Mrs. LiddellThe Government are committed to meeting the previous target for low and stable inflation of 2.; per cent. or less.