Ashley Seager
Wednesday September 19, 2007
Guardian Unlimited
 |  Under pressure: Bank of England governor Mervyn King. Photograph: Toby Melville/Getty |
The Bank of England today said it would inject £10bn next week into money markets in a bid to defuse tension that has risen in the wake of the Northern Rock crisis.
While the move was criticised in some parts of the media as a humiliating U-turn, the Bank stressed that the funds were being made available at penal rates of interest, restricted to small amounts per bank and only on presentation by commercial banks of very sound collateral.
Thus, it said, the move did not represent a bailout of banks who have run into difficulties, often of their own making.
Posts
No comments:
Post a Comment