 Thatcher finally agreed on 4 October, and Britain's entry into the ERM at a rate of DM 2.95 to £1.00 (with an agreed 6% floating 'band' either side) was announced the following day.An interest rates cut of 1% (from 15%) was also announced on the same day.The rest of Major's Chancellorship prior to the leadership contest was largely uneventful; he considered granting the Bank of England operational independence over monetary policy, with the ability to set interest rates, but decided against it.