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- Title
Markets and operations.
- Abstract
This article reviews developments since the Autumn Quarterly Bulletin in sterling financial markets, UK market structure and the Bank's official operations. Short-term sterling market interest rates have fallen since the "Autumn Quarterly Bulletin." Such declines could have occurred in response to global factors -- for example, a slowing of world activity in the wake of persistently high oil prices. Information from options prices suggests that the perceived risks to near-term sterling interest rates returned to being broadly balanced, having been skewed to the downside for much of the review period. At the same time, implied volatility from interest rate options fell slightly, consistent with reduced uncertainty surrounding market participants' expectations of the future path of short-term interest rates. INSET: Second consultive paper on money market reform.
- Subjects
UNITED Kingdom; INTEREST rate risk; OPTIONS (Finance); INVESTMENT interest; MONETARY policy; FINANCIAL markets
- Publication
Bank of England Quarterly Bulletin, 2004, Vol 44, Issue 4, p401
- ISSN
0005-5166
- Publication type
Article