mpc: 5
A key question was whether the recent asset price falls would prove to be a limited correction or
the beginning of a more marked and sustained change. Most market commentary had suggested it was
likely to be a temporary adjustment, following the rapid asset price increases over the previous three
years. This appeared consistent with anecdotal evidence of there having been some unwinding of
speculative positions during May. Nevertheless, it was possible that there would be further falls in
financial prices.
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