Injections pose no moral hazard risk: ECB member

In spite of the Bank of England's claims to the contrary, moral hazard should not be an issue in deciding whether or not to inject extra funds into the money markets, a member of the European Central Bank's (ECB) executive board said on Monday.

Mervyn King, the governor of the Bank of England, has said on several occasions since 9 August, when the credit crunch struck, that injecting extra funds into the United Kingdom's money market would exacerbate the problem of moral hazard, where banks t