EUROZONE AND UK INTEREST RATES

Motion Text

That this House notes the recent report from Societe Generale which examined interest rates for Eurozone countries using a similar methodology in their research to that used to help determine the United Kingdom interest rate; notes further the report's conclusion that the interest rate for Germany should be 1.8 per cent. and that for Ireland 6.25 per cent. when the current interest rate for the whole Eurozone is 3.25 per cent.; considers that this is strong evidence that 'a one size fits all' interest rate can cause inflation in some Eurozone countries while increasing unemployment in others; and believes that Britain