The review describes developments in various financial markets during May to July.
The money market - Conditions in the market were generally kept very tight and issues of Treasury bills at the weekly tender remained large; the Bank's minimum lending rate went up by 1% to 11½% on 21st May.
Capital markets - In the gilt-edged market conditions were mixed, but the authorities sold more stock in the second quarter than in the first. The equity market was very subdued.
Foreign exchange and gold markets - Sterling weakened further in May and early June but then partly recovered; the gold price fell sharply during the period.
Euro-currency markets In the second quarter, the underlying growth of the London market was probably slower than in the first.
Oil money movements - The exporting countries" surplus was little changed in the second quarter.
Licensing and supervision of deposit-taking institutions - A recent White Paper sets out proposals on the licensing and supervision of deposit-taking institutions, and on setting up a deposit protection fund.
Financial review