Bank of England warns more needed to rescue UK economy as bail-out falters

Angela Monaghan
London Telegraph
Tuesday, Dec 16, 2008

Bank of England’s Governor Mervyn King has warned that more will be needed to rescue the UK economy as the Government’s £500bn financial bail-out fails to get battered banks lending again.

In a letter to Chancellor Alistair Darling, Mr King said that “additional measures, building on the Government’s package to support the banking system announced in October, will probably be required to underpin lending to households and companies.”

Despite a blizzard of interest rate cuts from the Bank and a dramatic increase in borrowing by the Government, the economic picture for the UK continues to deteriorates. Manufacturing is contracting faster than expected and figures tomorrow are poised to show a rise in unemployment.

(ARTICLE CONTINUES BELOW)

Mr King has described the persistent unwillingness of Britain’s banks to lend to both individuals and businesses as the single biggest threat to the economy. HBOS, the country’s biggest mortgage lender, last week warned that it was getting no easier to lend as the economy weakens and house prices fall.

Mr King did not elaborate on what extra measures the Bank may consider, but they will almost certainly include cutting interest rates to below 2pc for the first time in UK history, and possibly a move by the Bank to pump cash directly into the economy.

Full article here

• 
• Social bookmarks
• 
• Email this article
• 
• Print this page

Comment Terms Of Use

2 Responses to “Bank of England warns more needed to rescue UK economy as bail-out falters”

1. Planning4aCrash Says:
   December 16th, 2008 at 6:45 pm

   Gold hit a record £560/ounce last week. Yes, whilst the record for the dollar is over $1000, gold, priced in Sterling is hitting record highs, showing the destitute health of Britain. But the party isn’t over yet. Get gold or be left high and dry. It is the one thing the government can’t play around with. Sovereigns and Britannia’s are capital gains tax exempt, leaving Brits uniquely able to weather the storm, if they have the bottle. Take your money from these fiat institutions and take control of your liberty. Take away their power. Banks profit from your deposits, leveraging them hundreds of times over, to increase inflation and reduce your purchasing power, and they do the same with debt, by collateralising it. Banks are only good for payroll and payment. All of the rest should be down to the individual with their pot of real assets. The elite use fiat money to buy real assets, lets try to beat them at that their own game.

2. flatearther Says:
   December 17th, 2008 at 2:31 am

   Time to plant sweet potatoes,they taste better than gold,you can fry them,boil them roast them and eat the leaves like salad,they are sadly under valued[and have been for hundreds of years] .In order to hook us into this system of exchanging money and not growing our own food, the value has been kept low so that we don’t know how to keep seeds,grow food or keep healthy[gmo,irradiated,hybridised,sprayed with poisons food?]this system has also robbed us of our independence,instead now we are dependant for our food,water and everything that we need to survive in this crazy mixed up pay for every thing world,keep your shoes at the ready people ,the new tax to save the planet from carbon dioxide is here, to take your ability to even have a fire[if you don't pay the tax]to keep your self warm,feed and hot showers,this war on carbon was dreamed up by the ‘club of Rome’in 1973 ,written in their book”the first global revolution” ,check it out ,this ‘war’is a rort.