Economy: Alan Walters diary [Mount unduly pessimistic; all misled by CGT legislation; reluctance to reduce interest rates][released 2012]

Wednesday 7th July 1982

Note on McGaw - I think FM [Ferdinand Mount] is unduly pessismistic - it does give us a basis for market factors and the interquartile range of % increases may be wide enough for retention rates etc. to be used in determining % increase

BBC Panorama (George Carey) - rather hostile audience

JBG [Jock Bruce Gardyne] PM [Peter Middleton] + TB [Terry Burns] - all of us were misled by the CTG [sic: CGT, i.e., Captial Gains Tax?] legislation - applying the % increases from 1982 to BASE year value of asset. Thought that Nick Ridley OK’ed this version. But we have to change it next year

Jock BG, P. Middleton, Terry B. JBG reluctant to put interest rates down because we might have to put them up again - great shock to confidence - but all three of us believe we need 1% off

Edmund de Rothschild at Guinevere’s [Lady Guinivere Tilney] for dinner - Self Centred man but enormously knowledgeable