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| Version 4 | Version 5 |
|---|---|
| Central banks plan emergency cash | Central banks plan emergency cash |
| (10 minutes later) | |
| Central banks have announced another round of co-ordinated auctions to provide more cash to financial markets. | Central banks have announced another round of co-ordinated auctions to provide more cash to financial markets. |
| Shares have risen on the news from the US Federal Reserve, the European Central Bank (ECB), and central banks of the UK, Canada and Switzerland. | Shares have risen on the news from the US Federal Reserve, the European Central Bank (ECB), and central banks of the UK, Canada and Switzerland. |
| They follow on from similar emergency auctions in December and January. | They follow on from similar emergency auctions in December and January. |
| The aim is to cut the cost of lending between banks, which has been inflated by the credit crunch. New York's Dow Jones average rose 1.8% on the news. | The aim is to cut the cost of lending between banks, which has been inflated by the credit crunch. New York's Dow Jones average rose 1.8% on the news. |
| The central banks are concerned that credit is still freezing up because banks don't want to lend to each other. | The central banks are concerned that credit is still freezing up because banks don't want to lend to each other. |
| UK home loans tumble to new low | |
| This could affect consumer spending, company investment and the housing market. | This could affect consumer spending, company investment and the housing market. |
| In the UK, mortgage lenders announced a sharp slowdown in the number of home loans approved due to difficulties in raising funds on commercial markets. | |
| The authorities are worried that the credit crunch shows few signs of easing, eight months after the crisis began. | |
| 'Work together' | 'Work together' |
| London's FTSE 100 also rose after the announcement and was up 1.5% in afternoon trading. | London's FTSE 100 also rose after the announcement and was up 1.5% in afternoon trading. |
| The US Federal Reserve is making up to $200bn (£99bn) available to financial institutions for 28 days instead of the usual overnight auctions. | The US Federal Reserve is making up to $200bn (£99bn) available to financial institutions for 28 days instead of the usual overnight auctions. |
| "Pressures in some of these markets have recently increased again," the US central bank said in a statement. | "Pressures in some of these markets have recently increased again," the US central bank said in a statement. |
| "We all continue to work together and will take appropriate steps to address those liquidity pressures." | "We all continue to work together and will take appropriate steps to address those liquidity pressures." |
| More details | More details |
| It is also extending a "swap lines" scheme, that will provide $30bn and $6bn through the ECB and the Swiss National Bank respectively. | It is also extending a "swap lines" scheme, that will provide $30bn and $6bn through the ECB and the Swiss National Bank respectively. |
| The ECB is also making available another $15bn, despite having said on Friday that it had no plans to do so because the market problems that had made the last auctions necessary were no longer there. | The ECB is also making available another $15bn, despite having said on Friday that it had no plans to do so because the market problems that had made the last auctions necessary were no longer there. |
| The British Bankers Association welcomed the auctions but called on the Bank of England to provide more details about them. | The British Bankers Association welcomed the auctions but called on the Bank of England to provide more details about them. |
| "We would urge the Bank of England to provide greater clarity on the range of acceptable collateral, the minimum bid rate, and whether these operations will continue beyond April," director John Ewan said. | "We would urge the Bank of England to provide greater clarity on the range of acceptable collateral, the minimum bid rate, and whether these operations will continue beyond April," director John Ewan said. |