The review describes developments in various markets, mainly in the period August to October.
The money market There was a steady decline in short-term interest rates, the Bank's minimum lending rate falling from 8% to 5%. Conditions were generally tight, in spite of large inflows from abroad.
Capital markets The gilt-edged market was very buoyant in August and September but conditions were mixed in October; the authorities sold nearly £3,000 million net of stock in the September quarter.
Foreign exchange and gold markets Until the end of October sterling's effective exchange rate index was held steady, but it was then allowed to float more freely.
International banking and euro-currency markets The London euro-currency market grew faster in the third quarter than in the second.
Oil money movements The oil-exporting countries' revenues were unchanged in the third quarter, but their imports were higher and their estimated cash surplus fell.
Commodity markets Trading was generally quiet during August to October, except in tin and cocoa.
Published on
01 December 1977
Financial review