The review describes developments in various markets, mainly during the period February to April.
At the beginning of February, financial markets were overshadowed by doubts about the prospects for the Government's monetary, fiscal and pay policies; during the month, however, a reassessment of all three led to a sharp turn-round in sentiment. The Bank's minimum lending rate (MLR), after being raised from 12½% to 14% early in February, was reduced to 12% in two steps in March and April. There were heavy sales of gilt-edged stocks, and over the period yields fell sharply throughout the maturity range.
Published on
01 June 1979
Financial review