Economic Situation

Part of the debate – in the House of Commons at 12:00 am on 11 July 1960.

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Photo of Mr Geoffrey Stevens Mr Geoffrey Stevens , Portsmouth Langstone 12:00, 11 July 1960

It has a two-fold purpose, as I was about to say. I know that the hon. Member is a very rapid talker, and he also seems to be a rapid interruptor, although I make no complaint about that.

I was about to say that if that extra 1 per cent. damps down the marginal schemes, that is precisely the effect Which it was intended to have. Furthermore, as a by-product, but a very important by-product, the increase of 1 per cent. in Bank Rate slows down a tendency for foreign funds deposited here to leave the country. Those are the two main reasons for the increase of 1 per cent. in Bank Rate.