PESC in Reflation: 1962–63
I had been continually pressing on the Chancellor of the Exchequer and the Treasury the need for a substantial reflation…. On 8th March 1962 Bank Rate was reduced from 6 to 54 per cent. But I was not satisfied and kept pressing for further expansionist moves. On 22nd March, Bank Rate came down to 5 per cent, and to my great delight the Treasury and the Bank agreed to a further reduction to 41/2 per cent on 16th April…. I was also anxious for the system of Special Deposits to be modified with a corresponding increase of the total sums available for credit: this was done on 31st May when £70 million of these deposits were released.
KeywordsPublic Expenditure Private Consumption Economy Campaign Income Policy Bank Rate
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