Bank of England to pump billions into money markets

The Bank of England today said it would pump £22.3bn (€28bn) into money markets as part of a co-ordinated move by major central banks.

The overnight lending by the BoE is being made in conjunction with the US Federal Reserve and alongside similar actions by the European Central Bank, Bank of Canada, Bank of Japan and the Swiss National Bank.

The Bank said: “These measures, together with other actions taken in the last few days by individual central banks, are designed to improve the liquidity conditions in global financial markets.

“The central banks will continue to work together closely and will take appropriate steps to address the ongoing pressures.”

The first such lending operation took place today and involved US dollar funds against eligible collateral.