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mpc: 4 Equity prices had continued to rise in most major equity markets, with the FTSE All-Share, S&P 500 and Eurostoxx indices all around 1%-2% higher over the month and close to five-year highs. The rise in equity prices was probably linked in part to the decline in long-term real interest rates, rather than just a change in view on future profitability. The recent fall in real interest rates, and the associated fall in the cost of capital, had also seemed to indicate that investment should have been stronger. That was at odds with the apparent weakness of investment growth in the UK, especially relative to investment growth in some other major economies. But it was unclear how much of the rise in UK equity prices was associated with activities in the United Kingdom and how much with companies' global operations. It was possible that a significant amount of any investment by UK- quoted companies (in particular, oil companies) might be made by their global operations overseas. That being said, the FTSE 250 index of medium-sized companies had also increased, and these companies were, perhaps, less likely to be investing overseas.