Bank of England offers more liquidity for money markets

0 Comments | AFP, March, 2008

LONDON (AFP) — The Bank of England said on Thursday it would inject 5.0 billion pounds into short-term money markets every week until April 9.

The British central bank said in a short statement that it would offer a further 5.0 billion pounds on Thursday, following a similar injection earlier this week.

The funds will be offered at its key lending rate of 5.25 percent in a three-day offer.

On Monday, the BoE pumped 5.0 billion pounds into money markets, which was repayable today.

However, the auction was almost five times oversubscribed as commercial banks scrambled for cash amid the ongoing worldwide squeeze on credit.

The Bank of England is seeking to address long-term liquidity issues in the so-called interbank market -- where commercial...

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