The money market - Conditions in the market were exceptionally tight; competition for Treasury bills was very strong. The Bank's minimum lending rate came down in stages from 15% to 12% by early February.
Capital markets - In the gilt-edged market, turnover rose strongly and yields declined; the authorities sold a record £3,180 million net of stock in the December quarter.
Foreign exchange and gold markets - Sterling rose appreciably during November to January; the US dollar was little changed on balance against the 'snake' currencies.
The investment currency premium - The effective premium fell during 1976 as a whole from 62% to 46%.
Euro-currency markets - The London market probably grew much faster in the December quarter than earlier in 1976.
Oil money movements - The oil-exporting countries' surplus declined in the fourth quarter, even though revenues rose sharply.
Published on
01 March 1977
Financial review