234SALE Posted January 17, 2008 Share Posted January 17, 2008 (edited) http://news.bbc.co.uk/2/hi/business/7149153.stm Bank lends £10bn to ease crunch Q&A: Central banks team up King denies Treasury rift ECB offers $500bn The Bank of England has lent banks and financial institutions £10bn in a move analysts expect to ease the impact of a credit crunch and high borrowing costs. The Bank is one of five central banks that have pledged emergency cash to stop credit markets seizing up. Borrowers bid for the cash at auction, with those who bid at the minimum rate of 5.36% getting 75% of the amount they had requested. Demand for the money was less than many analysts had expected. However most banks had to pay above base rate for the loans. Total bids exceeded the £10bn on offer by £850m with the highest accepted rate being 6.6% - giving a weighted average rate of 5.949%, the Bank said. "The rate was low and demand was relatively low which suggests that pressures might not be as intense as we perhaps might have thought," said John Wraith, head of UK interest rate strategy at Royal Bank of Scotland. "Someone borrowed money at 6.6% and that definitely suggests that they were desperate to get some funding," he added. RISK IS IN THE HOUSE LIBOR's getting high As central bankers try To calm the markets down But risk is back in town Risk is in the house YO! Risk is in the house Credit lines are drawn Where's the money gone Spreads are growing fast Markets sucking gas Risk is in the house YO! Risk is in the house Triple A means squat Commercial paper rots Monolines are down ‘Cause risk is back in town Risk is in the house YO! Risk is in the house Risk is going ‘round Can you hear the sound As tranches hit the ground ‘Cause risk is back in town http://marketoracle.co.uk/Article3396.html Edited January 17, 2008 by 234SALE Quote Link to comment Share on other sites More sharing options...
DabHand Posted January 17, 2008 Share Posted January 17, 2008 BOE have stopped announcing the lendees? Has that changed, or have the media voluntarily decided not to cause panic by divulging further details? Quote Link to comment Share on other sites More sharing options...
mbga9pgf Posted January 17, 2008 Share Posted January 17, 2008 BOE have stopped announcing the lendees? Has that changed, or have the media voluntarily decided not to cause panic by divulging further details? Its always been the case I think. NR resorting to lender of last resort was leaked I believe.... Quote Link to comment Share on other sites More sharing options...
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