1.   The official exchange rate, was henceforth to be adjusted weekly in line with the prevailing market rate.

2.   FRNs are capital market securities, generally issued at par, in which the coupon payments are variable and depend on market rates of interest.

3.   If market rates rise between coupon reset periods, the FRN will be trading slightly below par, while if market rates fall they will be trading slightly above.

4.   In such circumstances, lending will be at rates close to market rates and will be designed to avoid any distortion to bill rates.

5.   The higher the current market rate of interest, the lower will be the market price of existing bonds.

6.   Demand and supply will ensure that the rate of discount will reflect market rates of interest.

7.   In fact this is the major way in which the government seeks to alter market rates of interest.

8.   Thames Water has already bought five houses on the proposed site and says it will still buy those affected at the going market rate.

9.   It will also explain how market rates indirectly affect sterling interest rates generally, and specifically bank base rates.

10.   Market intervention by the Bank of England enables it to influence market rates of interest and thereby all other sterling interest rates across the complete maturity spectrum.