The review describes developments in various financial markets, mainly in the period February to April.
The money market - Conditions gradually eased during the period, although the market still required assistance on most days. The Bank's minimum lending rate fell in several steps from 12¼% to 8% by early May.
Capital markets - In the gilt-edged market, turnover was still heavy, but less so than in the previous three months, and yields fell on balance; share prices rose strongly, and new issues picked up.
Foreign exchange and gold markets - Sterling was little changed during February to April, but the US dollar eased back; the 'snake' arrangements were not unduly strained until late in April.
Euro-currency markets - In the first quarter, the underlying rate of growth in the London market was probably much the same as in the fourth.
Oil money movements - Oil revenues and the oil-exporting countries' surplus each rose slightly in the first quarter.
Published on
01 June 1977
Financial review