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World Leaders Summit

My Lords, on fiscal stimulus and the increase of capital expenditure, I will leave these issues for the Statement on the PBR which will be made by my right honourable friend the Chancellor of the Exchequer on Monday. I am sure, however, that he is well aware of the points made by my noble friend. On derivatives, I agree with my noble friend that this is one of the key issues that need better regulation. We have to ensure that these are regulated and that it is a proper, transparent market. I am not, however, the best person to address this today and I will write to my noble friend on this. On interest rates, which are now at 3 per cent, the lowest since 1954, the Bank of England is doing what it can. I am sure that it will continue to watch the economic situation and take appropriate action at the appropriate time. The Governor of the Bank of England has said that, if and when necessary, he will reduce interest rates.