Interest Rates

Part of Oral Answers to Questions — National Finance – in the House of Commons at 12:00 am on 28 February 1991.

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Photo of Mr Norman Lamont Mr Norman Lamont , Kingston upon Thames 12:00, 28 February 1991

I am sure that my hon. Friend will understand that I cannot comment specifically on the realignment of the deutschmark. It is true that the reunification of Germany has imposed considerable costs on the German economy. It has pushed up interest rates and inflation and has also led the German Government to increase taxes. As my hon. Friend said, that has immense implications for monetary policy in all European countries.