The review describes developments in various markets, mainly during the four months to end-February, and in the first two sections seeks to relate the impact of official policy to the environment in which it operates. Money-market conditions and the reserve asset position of the banking system were easier in the first half of the period but, with the advent of the peak tax collection period in January, there were renewed pressures which were offset by a reduction in the minimum reserve asset ratio requirement on banks and by developments in the Bank's money-market techniques. A reduction in minimum lending rate (MLR) from 14% to 12% was announced on 10 March.
Published on
01 March 1981
Financial review