Tuesday 16th February 1982
Richard Gibbs (for Finsberg MP) [Geoffrey Finsberg] about contracting out the cleaning of NHS hospitals - offered to contact Paddie [Paddie Walters] - but gave him John Burton’s name as the best as I could think of.
PS [Private Secretaries] Lunch
Very tired all day
Ryrie on Monetary Conditions - monthly review
Alarm at expansion of bank lending but agreement that money is tight. Do nothing until budget and then edge down rates?
Monetary targeting and waywardness forecast - Ryrie did not realise that 8-12% was Ok for M1 in 1982/3 - after that it goes to new forecast hights [sic].
Kit McM [Kit McMahon] said very surprised at resilience of markets
- 2% diff between £ + $ 3 month rates - who would have thought.
DI G [?] after budget
£ is fragile - acc to Kit - but the £ is far higher than he forecast.