Bank of England Governor Mervyn King tonight announced two new stimulus/easing packages to be implemented by the central bank, and stated that “I want to make it clear that the Bank, through its discount window and other facilities, will provide banks with whatever liquidity they require given the prospect of turbulence ahead.”
King also announced a new lending facility called the Extended Collateral Term Repo Facility.
Massive fears of contagion? Check.
New loan facilities with incomprehensible (to the Average Joe) names and acronyms? Check.
This is starting to feel like 2008 again.
QE to Infinity…AND BEYOND!!!
The Bank of England will launch two new stimulus packages in response to the worsening economic outlook, governor Sir Mervyn King has said.
Together with the government, it will provide billions of pounds of cheap credit to banks to lend to companies.
It will also offer banks access to short-term money to deal with “exceptional market stresses”.
Chancellor George Osborne said the measures would “inject confidence” into the financial system.