BoE and central banks boost liquidity

Other banks involved include the US Federal Reserve, the European Central Bank, and the central banks of Canada and Switzerland. The banks had already auctioned money in December and January to provide extra liquidity and combat the effects of the credit crunch. The news boosted share prices in Europe and the US, with the Dow Jones rising 2.02% as it opened and the FTSE 100 added 2.1% following the announcement. The Fed is putting up $200bn for financial institutions, which will be available for the next 28 days rather than the overnight sales seen at previous auctions. The ECB will mak...