15 August 1997

Fear of double revaluation less

FEARS of a "double whammy" green £ revaluation of 7.7% next week have subsided as the surge in sterlings value faltered.

It is likely that the monetary gap will be sufficient to result in a green £ revaluation to roughly 1ecu = £0.69, which will cut UK support prices by 4.35%.

The rate of sterling appreciation earlier this month, however, had led to fears that the average monetary gap in the final 10-day reference period, ending next Wednesday, would exceed 10%, triggering a second cut that would reduce support prices by 7.7%.