Economy: Alan Walters diary (budget) [interest rate rise, worried about Sept/Oct due to VAT refunds][released 2012]

Document type:	Declassified documents
Source:	Walters MSS (Churchill Archives Centre): WTRS3/1/1
Editorial comments:	Read other entries from this diary. View all Walters documents. The original diary can be studied here
Importance ranking:	Major
Word count:	99
Themes:	Monetary policy, Public spending & borrowing, Economic, monetary & political union

Thursday 17th September 1981

10.30 Walter Salomon to see PM - I primed him on EMS [European Monetary System]

Finishing Inst of Directors Speech

Lunch at Grinlay s Discount House - very enthusiastic about our leader - increased contrib to [Sic]

B/E [Bank of England] - WS [Walter Salomon] said Scholey would be a good man (John Baring does not want the job).

Fforde, George, Goodhart - background of interest rate rise. Very worried about Sept/Oct since £2Bn+ will be required to finance the VAT refunds. Should be OK after that - problem of convincing the markets.

Note to PM on this issue