Bank of England joins the fray with emergency loan

In what represents its first unusual market intervention during the current spell of market volatility, the Bank of England lent £314 million ($622 million) today to an unnamed financial institution through its standing facility.

The use of the standing facility indicates market illiquidity. The facility charges a 100 basis point penalty on top of the UK's 5.75% base rate for lending.

In Tokyo, the Bank of Japan lent 800 billion ($7 billion) on Tuesday, following a 1 trillion injection the da