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Bank Lending

Volume 979: debated on Monday 25 February 1980

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asked the Chancellor of the Exchequer what is the latest figure for the proportion of bank advances taken by manufacturing industry less food, drink and tobacco compared with 1970; and what are the implications concerning inflation in the real economy.

The latest information—relating to mid-November 1979—was given in my answer to the hon. Member of 14 January [Vol. 976, c. 635–8.] The analysis of bank lending by industry is available quarterly; information relating to mid-February will be announced by Bank of England press notice on 31 March.Bank borrowing by companies will reflect a number of influences, including the current rate of inflation. Future inflation will depend in turn on the rate of monetary growth, of which bank lending is one aspect.