Archive (Walters MSS)

Economy: Alan Walters diary [Bank thought market needed steadying; PM preoccupied with security matters][released 2012]

Document type: Declassified documents
Source: Walters MSS (Churchill Archives Centre): WTRS 3/1/2
Editorial comments: Read other entries from this diary. View all Walters documents. The original diary can be studied here
Importance ranking: Major
Word count: 162
Themes: Monetary policy

Monday 19th July 1982

Mkt strong everywhere

Colby reports [Tony Coleby, Bank of England official]

£300 mn sold -

£400 by 1

£400 mn Bank thought mkt needed steadying (thought borrow through discount window)

--- NO --- get interest rates down

Band II 116 [Band] III by 1/8

No more tranchets [sic] -

No more long stocks = (August, Large number of maturities)

N. Savings - should -

B/E declined to comment - not signals

Bank wants further cut in base rates

Interbank - down into 12’s 1213/16 7 day

Patrick Minford - 12 ¼ 3 months

ER 91.4, $1.74 246 -

Peter M [Peter Middleton] and I agree that we provide basis and then get Eddie G [Eddie George] along - we need a new agreement to push forward Conversion

Bank has not issued any really long stock but Colby [Coleby] said he wanted to do so for technical reasons

PM very preoccupied with security matters

NT [Norman Tebbit]