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Bank Of England

Volume 983: debated on Thursday 24 April 1980

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asked the Chancellor of the Exchequer when he will meet the Governor of the Bank of England.

When the Chancellor meets the Governor, will he discuss with him the Bank of England's own evidence from its financial model that the public sector borrowing requirement has only a small effect on the level of interest rates? Indeed, a change of £1,500 million affects interest rates by only 0.2 per cent. What will the Chancellor say to the Governor about that evidence?

In his evidence to the Treasury Select Committee a few days ago, the Govenor of the Bank of England stressed the importance of getting the public sector borrowing requirement down.