HC Deb 30 March 1999 vol 328 cc668-9W
Mr. Redwood

To ask the Chancellor of the Exchequer what estimate he has made of the impact on employment of a 5 per cent. increase in the value of the pound against the euro, assuming no other changes of policy or external circumstance over a two-year period. [79213]

Ms Hewitt

Assuming that the exchange rate were to increase with all other things remaining equal, there would tend to be a depressing effect on output, employment, and inflation in the short term. However, this is a wholly artificial assumption, not least because the Bank of England is required to set interest rates to hit a symmetrical inflation target.