Economy: Alan Walters diary (interest rates) [PM intent on reducing interest rates; PM wants to issue unrestricted index gilts][released 2012]

Document type:	Declassified documents
Source:	Walters MSS (Churchill Archives Centre): WTRS3/1/2
Editorial comments:	Read other entries from this diary. View all Walters documents. The original diary can be studied here
Importance ranking:	Major
Word count:	205
Themes:	Monetary policy, Trade unions, Strikes & other union action

Tuesday 19th January 1982

Letter from Treasury to M.S. [Michael Scholar] congratulating themselves on getting the rate down 1&#852016 £ over 1.89 this morning on miners strike news.

11.30 Preliminary mtg with PM on interest rates - intent on getting them down - mad at GH [Sir Geoffrey Howe] - US money supply figures (Paul Volker [sic: Volcker] did not know why).

1200 GH, PM, TB [Terry Burns], Ken Cousins [sic: Couzens], Gvr [Governor of the Bank of England: Gordon Richardson] - why no r ↓½%

Gvr said sterling fell to 90 or so. Then the miners etc. But all have now gone.

PM gave Gvr a fright by saying that she wanted issue unrestricted IGs [Indexed Gilts]. Gvr tried to persuade PM and TB after the meeting to support him - but no dice.

GH was told not to let anything go round cabinet because it would leak. GH said he had to.

PM said Nott had suggested £11 Bn PSBR which she thought far too high - £9 Bn is max - Cabinet will come along with their PSBR suggestions.

PM said she must get rid of GH after the budget. HE ought to give instructions to the Gvr.

Frank Taylor’s for dinner