Monetary Policy (Implementation)

Oral Answers to Questions — National Finance – in the House of Commons at 12:00 am on 5 March 1957.

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Photo of Mr John Cronin Mr John Cronin , Loughborough 12:00, 5 March 1957

asked the Chancellor of the Exchequer if, in accordance with his powers under Section 4 of the Bank of England Act, 1946, he will direct the Bank of England, after consultation with the Governor, to publish periodical bulletins to elucidate the technical measures it has taken, is taking, or is intending to take, to implement monetary policy.

Photo of Mr Peter Thorneycroft Mr Peter Thorneycroft , Monmouth

I do not think that the course suggested would be an appropriate method of achieving the hon. Member's objective.

Photo of Mr John Cronin Mr John Cronin , Loughborough

Would not the right hon. Gentleman agree that if the machinations of the Bank of England were subject to the light of public criticism, many of the grave errors of the last two years would have been avoided, particularly the raising of short-term interest rates, which has caused so much havoc to our balance of payments?

Photo of Mr Peter Thorneycroft Mr Peter Thorneycroft , Monmouth

I rather doubt that, but if the Bank were to state in advance what its intentions were as to the use of these technical mechanisms, I think it would lead to a good deal of confusion in the market.