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King justifies re-capitalisation

With banking conditions at their direst since the beginning of First World War, the British Treasury had to re-capitalise the country's ailing banking sector, said Mervyn King, the governor of the Bank of England.

Bank reforms money market operations

The Bank of England set out plans for three major reforms of its money market operations, including proposals for two new facilities aimed at alleviating the tensions that have kept prices for interbank loans well above historical norms.

Britain bails out banks

The British authorities on Wednesday pledged to spend up to £50 billion ($86 billion) in taxpayer funds to recapitalise its beleaguered banking industry, shares in which have plummeted in recent days.

UK nationalises lender

The UK authorities have taken a second mortgage lender into public ownership after events triggered by the collapse of Lehman Brothers, an investment bank, sparked a withdrawal of deposits.

MPC members signal Bank won't cut just yet

Despite Sir John Gieve's indication earlier this week that he would back a rate cut in the coming months, comments by other members of the Bank of England's Monetary Policy Committee (MPC) signal rates will stay at 5% for the time being.

BoE's Dale: housing to impact banks

The deterioration in the housing market is likely to impact banks' balance sheets, leading them to tighten further the supply of credit, said Spencer Dale, the chief economist and a member of the Monetary Policy Committee (MPC) of the Bank of England.

BoE's Tucker highlights inflation risk

The news on the British economy has got worse and inflation now looks more likely to fall sharply in 2009, but Paul Tucker, the executive director responsible for markets at the Bank of England, signalled Friday that the Monetary Policy Committee (MPC)…

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