Central Banks pump billions into money markets
18 September 2008
Global Central Banks have joined forces stumping up billions of dollars to pump into the money markets in a attempt to raise the amount of credit available.
The Bank of England is releasing $40 billion, the European Central Bank is releasing $55 billion and the move will see the US Federal Reserve injecting $180 billion.
This is the fourth time since December 2007 that global Central Banks have come together in a co-ordinated move to try and ease turmoil in the markets.
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The Bank of Japan, Swiss National Bank and the Central Banks of Canada, Australia, India and South Korea have also released more funds.
It comes after week of shock announcements which have led to billions being wiped of share prices around the world: the bankruptcy of US investment bank Lehman Brothers, the takeover of Merrill Lynch, the US bail-out of insurance giant AIG and here in Britain the planned Lloyds TSB takeover of HBOS.
SaveBorrowSpend Philippa Adam
