Central banks join forces to ease liquidity

In a co-ordinated move, the Bank of England, European Central Bank, Federal Reserve, Swiss National Bank and Bank of Canada are taking measures to “address elevated pressures in short-term funding markets”. The move is aimed at providing funds to banks struggling with the tightening credit conditions. The Bank of England has already scheduled long-term repo open market operations on 18 December and 15 January, in which they will offer up to £11.35bn, of which £10bn is at 3-month maturity. RLAM economist Ian Kernohan says the move shows just how serious the illiquidity issue has become. ...