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Monetary Policy

Little demand for BoE cash

Bids for £15 billion-worth ($29.4 billion) of three-month loans from the Bank of England only just exceeded the amount on offer in spite of strong tensions in sterling interbank markets.

Trichet indicates rates to remain at 4%

Jean-Claude Trichet, the president of the European Central Bank (ECB), signalled that the Governing Council will leave rates unchanged for the foreseeable future despite mounting evidence that the credit crunch could severely impact the real economy.

Fed minutes point to moderate easing

The latest Federal Reserve minutes suggest that the period of rapid monetary policy easing that started in late January may be over and could be replaced by a return to a more conventional, gradualist approach.

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