The review describes developments in various markets, mainly in the period February to April.
Conditions in the UK money markets remained very tight, and the Bank provided regular and heavy assistance to relieve the excessive pressure on liquidity. Minimum lending rate (MLR) remained at 17% throughout the period , but three-month market rates rose to over 18% in March, before easing in April.
The gilt-edged market was generally steady. Net official sales of stock were much smaller in the first quarter than in the fourth, but there were heavy sales after 31 March.
On the foreign exchange markets, sterling was mostly firm. In line with most other currencies, there was a sharp, but temporary, fall against the dollar at the end of March.
The review contains the usual sections on international banking and the euro-currency markets, oil money movements and the commodity markets.
Published on
01 June 1980
Financial review