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Bank Lending

Volume 974: debated on Monday 26 November 1979

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asked the Chancellor of the Exchequer what increase in bank lending he expects during the coming year to meet the demand for mortgages arising from the Government's plans to sell council houses.

[pursuant to his reply, 22 November 1979, c. 330]: I have made no such estimate, but any effect could not be large. Banks do little direct lending on mortgage and any indirect effects on the total demand for private sector credit cannot be quantified. The commercial bank's decisions how to respond to any such demand will have to be made within the overall constraints of monetary policy.