The review describes developments in various markets, mainly during the period August to October.
Money-market conditions and the reserve asset position of the banking system continued to be very tight. To offset the constant upward pressures on short-term interest rates, the special measures of assistance provided by the Bank were regularly renewed, until they were eventually terminated in late November and early December. Minimum lending rate (MLR) was reduced from 16% to 14% as part of a package of measures announced by the Chancellor of the Exchequer on 24 November.
Published on
01 December 1980
Financial review