UK short-term interest rate expectations implied by the forward curve declined a little over the review period, following the release of the August 2014 Inflation Report. Euro-area short-term interest rates fell relative to their UK counterparts, reflecting a combination of loosening of monetary policy by the ECB and weaker-than-expected economic data. Sterling rose early in the review period, briefly reaching a new post-crisis high. The currency subsequently depreciated, broadly consistent with moves in international interest rates. Geopolitical risks remained a key concern for market participants and contributed to a brief sell-off in risky assets, although much of this subsequently unwound.