§ Mr. Wareing
asked the Chancellor of the Exchequer if he will make a statement on the growth of the money supply during September 1984 and his expectations for sterling M3 during the remainder of the financial year 1984–85.
§ Mr. Ian Stewart
In banking September MO grew by 1 per cent. and £M3 by 1.3 per cent. Target period, six and 12 month growth rates for MO, on an annualised basis, all stand at between 5 and 5½ per cent. comfortably within the target range of 4.8 per cent. Annualised growth in £M3 in the target period so far, at 10 per cent. is now at the top of the target range. Six and twelve month growth rates for £M3 remain around 9 per cent. Growth in £M3 in banking September may have been inflated by arbitrage. I confidently expect that £M3 will be within its target range over the 1984–85 target period as a whole.