asked the Chancellor of the Exchequer what has been the expansion in M1 and M3 over the last three months.
During the three banking months to mid-April, M1 grew by £539 million and M3 by £734 million. These figures represented increases over the mid-January level of 3·9 per cent. and 2 per cent. respectively. All the figures are seasonally adjusted. Figures for May have been delayed by the introduction of new statistical returns from the banks.
asked the Chancellor of the Exchequer what is the official definition of M1 and M3 in relation to the money supply.
The narrowed definition of the money stock (M1) comprises holdings of notes and coin outside the banks plus all current accounts of United Kingdom private sector residents denominated in sterling less 60 per cent. of the net value of transit items.The other definition (M3) covers holding of notes and coin outside the banks, plus all deposits of United Kingdom residents—other than banks—with the United Kingdom banking sector, including current and deposit accounts in sterling and foreign currency and estimated holdings of sterling certificates of deposit by United Kingdom residents—other than banks—less 60 per cent. of the net value of transit items.