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| UK Banks to Get £100bn Credit Boost to Fight Eurozone Crisis |
| London, 15.06.2012 |
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| The £100bn boost to the banking system is aimed at supporting the financial institutions against a possible eurozone collapse.
The Bank of England will start pumping up to £100bn of cheap credit into the UK economy - at least £5bn a month - within the next few days. This is on top of its £325bn quantitative easing (QE) programme. The schedule for the Extended Collateral Term Repo Facility auctions - which are reminiscent of the ECB's LTROs - will be set out at 8am. And under a new "funding for lending" scheme, worth up to £80bn, the Bank will provide cheap loans to banks for several years, at below market rates, in exchange for the banks lending the money to households and small and medium-sized businesses.
King also dropped a heavy hint that more QE could be on its way: "The case for further monetary easing is growing." He rejected the suggestion, from monetary policy committee member Adam Posen earlier this week, that the Bank should move away from gilt purchases towards private sector assets. His argument is that the Bank does not have a mandate to put taxpayers' money at risk by making outright purchases of risky assets.
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Address : Euro-Brew Ltd., Hlboká 22, 917 01 Trnava, Slovakia
Tel. : +421 33 53 418 53, Fax : +421 33 53 418 52, E-mail : info@eurobrew.sk |
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