Lawson Says Sterling Target Comments Insignificant

Chancellor of the Exchequer Nigel Lawson criticised media coverage of comments he made yesterday, when he was reported as saying he wanted sterling to stay roughly where it was, specifying a rate of around 2.90 marks and 1.60 dlrs to the pound.

Holding up a newspaper report on his comments headed “Exchange Rate Targets Set” Lawson told journalists “This story is a complete non-event.”

He criticised the report, which said he was now targetting sterling against the dollar and mark. “Nothing of the sort occurred,” Lawson said.

Lawson said he had only told National Economic Development Council panel members what the pound’s current dollar/mark rates were that day, after saying he was happy with current sterling levels. He said he had told the NEDC, a tripartite forum of government, unions and industry, that the pound would be kept near its present level by a mixture of interest rates and intervention on foreign exchange markets.

He then repeated to the panel that he remained satisfed with sterling at around its current levels following the Paris accord in February on currency stabilisation.