Bank of England

The Bank of England and the Debt Management Office should take co-ordinated action to help ease the liquidity crisis, according to New Star's chief economist Simon Ward.

Interest rates have been cut by 0.25% to 5% by the Bank of England's Monetary Policy Committee (MPC), it was announced today.

House prices saw their largest monthly fall for over 15 years in March, dropping by 2.5%, according to the Halifax.

Mortgage availability will worsen over the next three months, according to the Bank of England.

Mortgage lending has slumped to its lowest level for 13 years, the latest Bank of England figures suggest.

Government ownership of the failed Northern Rock bank could be exacerbating the liquidity crisis, according to New Star economist Simon Ward.

Leader of the Conservative Party David Cameron says the FSA lacks expertise in key areas and should not be in charge of rescuing banks.

Mervyn King, governor of the Bank of England, has warned a committee of MPs the credit crunch is having a major effect on the UK economy.

Gross mortgage lending fell by 7% between January and February, indicating a further slowing of the market, according to the Council of Mortgage Lenders (CML).

Mervyn King is to meet with the bosses of major UK banks to discuss the liquidity problems affecting world credit markets.