Bank of England pats itself on back over economic stability
The Bank of England says the British financial system is now much more stable. That's good news, because for a while there, many thought it was going to implode. No doubt the central bank will thank its multi-billion pound secret bailout of HBOS and Royal Bank of Scotland for the good tidings. The latest statement is certainly timed to calm angry MPs and a recession-weary public, with the bank saying a comprehensive economic rescue plan involving $300 billion and a period of low interest rates have helped restore calm. But now it says commercial lenders need to do more to improve their long-term stability. The BoE is using the massive injection of cash into the system to buy assets from banks and UK companies, hoping that this will stimulate lending and consumer demand. Read more: BBC, Wall Street Journal
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