At the very end of January. and again for a short while in March. sterling came under strong pressure. and the reserves fell. These losses were largely offset by borrowing from overseas monetary authorities; their assistance showed once again that the present international payments system can remain un shaken by such short-term pressures. Sterling was steady in April and May and the reserves rose in each month. At home. output has been recovering well from the setbacks of the winter. The Budget. which the Chancellor of the Exchequer introduced at the beginning of April. was designed to promote a steady and sustainable expansion of economic activity. Monetary policy has meantime sought to maintain the easier credit conditions and lower rates of interest established earlier.