This article reviews developments in international and domestic financial markets, drawing on information from the Bank of England’s market contacts, and describes the Bank’s market operations in the period 26 October 2001 to 15 February 2002.
- Dollar, euro and sterling money market yield curves steepened over the period.
- Long-term interest rates rose in the United States, the euro area and the United Kingdom.
- The effective exchange rates for sterling and the euro changed little during the period. The dollar continued to strengthen, while the yen depreciated.
- Most major international equity indices were broadly unchanged, while Japanese equity prices fell.