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- Title
Markets and operations.
- Abstract
This article reviews developments since the Winter Quarterly Bulletin in sterling and global financial markets, in market structure and in the Bank's balance sheet. • Short-term sterling market interest rates fell, while short-term US dollar and yen market rates increased, as market participants revised upwards their expectations for official rates in these currencies. At longer horizons, real forward interest rates declined across the major currencies. At very long maturities, sterling real forward rates fell by more than rates in other currencies, possibly reflecting heightened demand by UK pension funds to match their expected liabilities with long-dated fixed income assets. • Global equity prices rose and credit spreads narrowed, suggesting that investors' appetite to take risk remained strong. • In January, as a further step towards the planned introduction of reforms to the Bank's operations in the sterling money markets, the Bank began lending using longer-term repos at market-determined interest rates.
- Subjects
POUND sterling; FINANCIAL markets; BANKING industry; INDUSTRIAL organization (Economic theory); FINANCIAL statements
- Publication
Bank of England Quarterly Bulletin, 2006, Vol 46, Issue 1, p3
- ISSN
0005-5166
- Publication type
Article