Below is the text of Mr Major’s written Parliamentary Answer on the Exchange Rate on 21st October 1988.
Mr. Pike To ask the Chancellor of the Exchequer what is Her Majesty’s Government’s policy towards the maintenance of a firm exchange rate in the particular context of industry’s need to plan ahead; and how this policy has evolved since the statement by the Chief Secretary to the Treasury on 12 December 1986, Official Report, column 260.
Mr. Major [holding answer 19 October 1988]: Control of inflation is of paramount importance to industry. The Government have made it clear that it will not accommodate inflation by exchange rate depreciation. Industry understands that and can plan ahead on that basis.