The review describes developments in various financial markets during August to October.
The money market - The Bank's minimum lending rate went up by 1½% to 13% on 10th September and by a further 2% on 7th October; conditions in the market were generally comfortable in the first half of the period but tightened later.
Capital markets - The authorities sold nearly £600 million net of gilt-edged stock in the third quarter, mostly towards the end of September; in the equity market, turnover and prices again fell during August to October.
Foreign exchange and gold markets - Sterling was under heavy pressure for much of the period and its effective depreciation widened sharply; a realignment of 'snake' currency parities took effect on 18th October; the dollar price of gold rose on balance.
Euro-currency markets - The London market grew more slowly in the third quarter.
Oil money movements - Oil revenues rose sharply in the third quarter but the exporting countries' surplus was smaller than in the previous three months.
Published on
01 December 1976
Financial review