Liquidity scheme stabilising markets: BoE staff

The Bank of England's governor and head of markets said on Wednesday that its Special Liquidity Scheme, introduced in late April, had begun to temper money-market tensions.

Adopting the tone of cautious optimism taken by Ben Bernanke, the chairman of the Federal Reserve, on Tuesday, Mervyn King, the governor, and said: "Financial market conditions have stabilised since the introduction of the Special Liquidity Scheme, but they remain fragile."

Paul Tucker, the executive director responsible for

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