Oral answer to question provided on Monday, 19 January 2009 in the House of Lords, by Lord Myners (Labour).

Economy: Exchange Rate

Answer: My Lords, the Pre-Budget Report 2008 states: "““Export volumes growth in 2009 is forecast to be 0 to ½ per cent, but as growth in the UK’s export markets recovers and the effects from sterling gradually encourage more companies to pursue export opportunities, growth is forecast to pick up in 2010 and further in 2011””." The Pre-Budget Report also mentions that, "““the pass-through from sterling’s depreciation will exert upward pressure””," on prices, but it states that inflation is expected to return to target in 2011 as other factors exert downward pressure.

This is an answer to the Oral question asked on Monday, 19 January 2009 by Lord Barnett (Labour).

Question: To ask Her Majesty’s Government what consideration they have given to whether a decline in the sterling exchange rate is good or bad for economic recovery.

Secondary information