Written question asked by Austin Mitchell (Labour), in the House of Commons. It was due for an answer on Thursday, 19 June 1997. It was answered by Baroness Liddell of Coatdyke (Labour) on Thursday, 19 June 1997 on behalf of the Treasury.

Treasury

Question: What estimate he has made of the effects of a 0.5 per cent. increase in interest and mortgage rates on (a) inflation and (b) economic growth over one year.

Answer: Mr. Mitchell: To ask the Chancellor of the Exchequer what estimate he has made of the effects of a 0.5 per cent. increase in interest and mortgage rates on (a) inflation and (b) economic growth over one year. [4275] Mrs. Liddell: The effects of changes in interest rates cannot be precisely estimated. In general, increased interest rates can be expected to result in lower underlying inflation and economic growth in the following year than would have occurred otherwise.

Secondary information