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 Chris Smith Mr Chris Smith , Islington South and Finsbury 12:00, 28 February 1991

How on earth can British business and British industry compete in an increasingly challenging world when they face interest rates that are substantially higher than those of our major competitors? When will the Government realise that placing such exclusive reliance on high interest rates to control demand may control demand eventually, but it may also cause severe harm to the supply side of the economy?