This is precisely what has happened; hence the rise in the bank rate.
These periods of high bank rate have been expensive for the building of new plant, and in other ways.
So they themselves may have to cut in the hope that the bank rate will be reduced later on.
The bank rate has been dealt with by my noble friend and by other speakers.
This increased bank rate has been made necessary by periodic crises.
Now let me come to the question of the high bank rate and dear money in general.
It affects the balance of payments, which in turn affects the bank rate, which fixes interest rates and the cost of money.
A high bank rate also involves higher rents and interest charges on mortgages.
