Archive (Walters MSS)

Economy: Alan Walters diary [PM said last thing she wanted was another increase in base rates][released 2012]

Document type: Declassified documents
Source: Walters MSS (Churchill Archives Centre): WTRS 3/1/2
Editorial comments: Read other entries from this diary. View all Walters documents. The original diary can be studied here
Importance ranking: Major
Word count: 127
Themes: Monetary policy, Taxation

Tuesday 7th December 1982

Overnight pressure on stg [sterling] mainly from Continentals + Yen - 11% on 7 day, 103/8 on 3 month - threat to base rates

PM said that the last thing she wanted was another increase in Base Rates. Ex R 85.4

Give away on Ilygon - “bird in the hand” [line in red crayon]

- great pressure from Trade + Industry

E on steel plant at Iligon

Tax avoidance (PM’s mtg) cancelled

Matthew Simon at Tante Claire

Spent £160 by 10.00 oclock - but then pressure eased but still 11% of 7 day, 103/8 on 3m

4.00pm 10¾ [on 7 day], 10½ [on 3 month]1629 3.93 Ex Rate 85.7

Steadied of its own accord - no more intervention apart from £125m this morning