Written question asked by Lord Redwood (Conservative), in the House of Commons. It was due for an answer on Tuesday, 20 May 1997. It was answered by Baroness Liddell of Coatdyke (Labour) on Tuesday, 20 May 1997 on behalf of the Treasury.

Treasury

Question: If he will comment about the level of interest rates needed now to create price stability in 2 years' time.

Answer: Mr. Redwood: To ask the Chancellor of the Exchequer if he will make a statement about the level of interest rates needed now to create price stability in two years' time. [286] Mrs. Liddell: The Chancellor judged it necessary to raise interest rates on 6 May by a 1/4 percentage point, to 6 1/4 per cent., in order to put us back on track to achieve the Government's inflation target. He also decided to give operational responsibility to the Bank of England to set interest rates at the level necessary to meet the Government's inflation target.

Secondary information