Bank Rate

Oral Answers to Questions — National Finance – in the House of Commons at 12:00 am on 25 February 1960.

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Photo of Mr David Ginsburg Mr David Ginsburg , Dewsbury 12:00, 25 February 1960

asked the Chancellor of the Exchequer what directions he gave to the Bank of England in connection with the recent increase in the Bank Rate.

Photo of Mr David Ginsburg Mr David Ginsburg , Dewsbury

I thank the hon. Gentleman for that reply. Has his attention been drawn to a speech made last Friday week by the Governor of the Bank of England in which he said that the main reason for the increase in the Bank Rate was the internal situation? Also, has he noted a statement by his right hon. Friend the Chancellor of the Exchequer that the main reason for the increase in the Bank Rate was the balance of payments position? Can the hon. Gentleman clarify the position?

Photo of Mr Anthony Barber Mr Anthony Barber , Doncaster

The procedure which was followed on this occasion was that which was described by my right hon. Friend in the debate on the Radcliffe Report on 26th November.

Mr. H. Wilson:

While we appreciate all this flexibility, will the hon. Gentleman answer my hon. Friend's supplementary question? Is it not a fact that the Bank of England, when it announced the increase in the Bank Rate, stated that it was because of the internal situation, that the Chancellor has said that it was because of the external situation and that the Governor now says that it was because of the internal situation? Whichever it was, internal or external, will the hon. Gentleman say whether the rise in the Bank Rate has achieved what the Government set out to do when they proposed it?

Photo of Mr Anthony Barber Mr Anthony Barber , Doncaster

It is achieving what the Government set out to do when the rise took place. After the rise in the Bank Rate, my right hon. Friend came to this Box and answered a considerable number of Questions about it. I do not think that I can usefully add to what my right hon. Friend said then.