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P174 CEEFAX 174 Thu 7 Feb 21:55/55    The Prime Minister has defended Britain's membership of the Exchange Rate Mechanism at Question Time. Mr Major told the Commons that the system was not increasing pressure to keep up interest rates and rates would come down when inflation fell. "The ERM is in no sense a straitjacket. If the pound were falling we would not be able to cut interest rates whether we were in or out of the ERM," he said. Mr Major said the stability provided by the ERM would prove a help, not a himdrance, in due course. 101 War headlines 130 Gulf military Next News Parl'ment Latest GulfIndex