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.

The bid-to-cover ratio for the Bank's auction on Tuesday of £15 billion-worth of three-month loans was 1.01, revealing relatively little demand for the funds.

"It leaves me wondering what the banks would like to see from the Bank," Marc Ostwald, an economist at Insinger de Beaufort, told Central Bank News. "I