§ Mr. Straw
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?
§ Mr. Lawson
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.