The operation of monetary policy

• UK official interest rates remained unchanged at 6% in the first quarter of 1997.

• Sterling appreciated by a further 2% in effective terms, to 98.0 on its exchange rate index.

• Gilt yields, in common with yields on government bonds in many other major economies, rose in this period.

• The Bank introduced reforms to its daily operations in the sterling money markets on 3 March.

• Gross gilt sales were £9.7 billion, bringing the total for the 1996/97 financial year to £38.8 billion.

• The Government’s financing requirement and remit to the Bank of England for the 1997/98 financial year was published on 12 March.

The operation of monetary policy