Engagements

Part of Oral Answers to Questions — Prime Minister – in the House of Commons am 12:00 am ar 7 Chwefror 1991.

Danfonwch hysbysiad imi am ddadleuon fel hyn

Photo of Mr John Major Mr John Major , Huntingdon 12:00, 7 Chwefror 1991

The stability certainly reflects, to some extent, our membership of the exchange rate mechanism, which is in no sense a straitjacket. If the pound were falling, we should not be able to cut interest rates whether we were in or out of the exchange rate mechanism. In due course, the stability that the mechanism provides will help and not hinder. The opportunity will come as our inflation rate falls.