---------------------- Forwarded by Zimin Lu/HOU/ECT on 03/31/2000 01:43 PM 
---------------------------


Anjam Ahmad
03/28/2000 02:08 PM
To: Martina Angelova/LON/ECT@ECT, Trena McFarland/LON/ECT@ECT
cc: Dale Surbey/LON/ECT@ECT, Mary Thambiah/LON/ECT@ECT, Zimin Lu/HOU/ECT@ECT, 
Stinson Gibner/HOU/ECT@ECT, Vince J Kaminski/HOU/ECT@ECT 
Subject: UK PPI Curve Generator with Smoothing

Hi Martina & Trena,

I think this is a reasonable smoothing method between the short and long-term 
models - let me know if you need me to explain it.  I also included the 
short-term models so this is now a self-standing spreadsheet, but probably 
still needs cleaning up a bit.

ZIMIN & STINSON:

We agreed on short-term and long-term models for DZCV and PLLU PPI indices in 
a meeting with Dale and Trena and a simple smoothing is employed to give the 
results as follows.  Blue and red curves are the proposed DZCV and PLLU PPI 
index forward curves whilst RPI is the market-derived black curve.



Regards,

Anjam
x35383