The European Central Bank (ECB) today acted to inject liquidity into the eurozone money markets, offering to lend funds to financial institutions at an interest rate of just 4 per cent, according to The Times .
The Bank, which pumped €94.8 billion (£63.9 billion) into the European banking system in early August when the liquidity crisis was in its infancy, did not set a size for today's injection but gave financial institutions a deadline of early this morning to borrow at the one-off rate.
The ECB's move follows the Bank of England's decision yesterday to offer £4.4 billion in extra funding to British banks struggling under the current liquidity crisis.
UK HOUSE PRICE rises are slowing after recent increases in interest rates, according to the Halifax, The Guardian reports.
However, the City expects the Bank of England will keep borrowing costs unchanged at 5.75% today - much to the relief of homeowners, as the turmoil in financial markets continues to cloud the outlook for the economy.
House prices increased at just 0.4% in August from the month before, half the pace of July the Halifax said. The annual rate rose to 11.4% from 11.2%.
MOODY'S, THE UNDER-FIRE credit ratings agency, unleashed a flurry of credit downgrades and negative outlooks on the debt held by highly specialised investment vehicles that are at the centre of the global credit crisis, according to The Independent.
The moves taken on half-a-dozen investment funds known as SIVs and SIV-lites were the result of the agency's comprehensive review of the $400bn (£200bn) global sector and further unsettled markets jittery about the extent of the credit crunch that began in America's subprime mortgage market.
The negative outlooks announced yesterday affect $14bn in bonds made up principally of risky US mortgages. The European Commission last month opened an investigation into whether Moody's, along with rival Standard & Poor's, reacted swiftly enough when the credit market began to melt down earlier this summer.
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