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The Economy (Supporting Business)

The Minister is being most generous in giving way. A little earlier, he was claiming the credit for the independent Bank of England's cut in interest rates, yet most businesses will not borrow at 0.5 per cent. on account of the continuing large credit spreads in the economy. What does he think about long-term interest rates at 4.5 per cent., which is nine times the short-term interest rates? The rates available for businesses to borrow at, assuming that they can find a bank willing to lend the money, are far higher than the 0.5 per cent. he quoted.