§ Mr. Gould
asked the Prime Minister, further to her answer of 19 January, Official Report, c. 273, concerning the level of United Kingdom interest rates compared to those in the United States of America, to what extent firm control of public sector borrowing has contributed to the reduction in United Kingdom rates relative to United States rates over the past year; what contribution if any was made by overfunding; and how the contribution compares with that made by the outflow of capital.
§ The Prime Minister
The level of United Kingdom interest rates reflects a variety of factors. As explained in my reply of 19 January, the only way to secure a lasting fall in interest rates is to maintain sound financial policies.