HM Treasury News Release
40/97                                       6 May 1997
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    CHANCELLOR ANNOUNCES NEW FRAMEWORK FOR MONETARY
                       POLICY
                                


The Chancellor of the Exchequer, Gordon Brown, today
announced a new framework for monetary policy. 
Attached to this press release are: 

     The text of the Chancellor's statement at today's
press conference;

     A letter from the Chancellor to the Governor of
the Bank of England of 6 May.