Friday, May 8, 2009

Surprise £50bn cash injection is attempt to avert new phase of credit crunch

Bank of England braced for third wave of financial crisis

On Thursday the Bank surprised the City by announcing that it would pump an extra £50bn of new money into the economy despite recent stockmarket rallies. Now the Guardian has learned that this increase in quantitative easing was driven by fears in Threadneedle Street that the credit crunch is still sucking the life out of the British economy and the banking sector remains in deep trouble. Richard Lambert, director general of the CBI, said: "The fact is that for all the injections of taxpayers' money, the credit markets are still not working properly."

Posted by devo @ 11:53 PM (927 views)
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3 thoughts on “Surprise £50bn cash injection is attempt to avert new phase of credit crunch

  • charlie brooker says:

    As you can see, my young apprentice, your friends have failed. Now witness the firepower of this fully armed and operational battle station.

    Fire at will,Commander.

    Reply
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  • ….but the Fed reported that US banks were OK. Or was that just a PR stunt?

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  • Clockslinger says:

    Am I right in thinking the fed moved the goalposts a little (abandoning mark to market valuations and now their “stress testing” criteria) ? So maybe they have made it OK!

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