asked the Chancellor of the Exchequer what effect changes in the minimum lending rate have on other domestic interest rates, including building society mortgage interest; what consultations he had with the Building Societies Association prior to the increase in minimum lending rate; and if he will make a statement.

The effect of a change of MLR on other interest rates depends on the relative structure of interest rates before the change. For the effect of the recent change I would refer the hon. Member to the reply given by my right hon. Friend to my hon. Friend the Member for Luton, East (Mr. Clemitson) on 23rd November—[Vol. 958. c. 1458–601.] The Government have regular consultations with the Building Societies Association on interest rates and other matters. But the authorities do not consult any organisation about, or otherwise discuss, imminent changes in MLR.