Sunday, May 10, 2009

Bank of England braces for 3rd wave of crisis

Bank of England

Image by D1v1d via Flickr

The Bank of England is bracing for a third wave of the financial crisis with a surprise 50-billion-pound (about 75 billion U.S. dollars) cash injection, the Guardian newspaper reported on Saturday.

"The increase in quantitative easing was driven by fears in Threadneedle Street that the credit crunch is still sucking the life out of the British economy and the banking sector remains in deep trouble", a report by the Guardian said.

The bank took the city of London by surprise by announcing it would pump an extra 50 billion pounds (about 75 billion dollars) of new money into the economy despite recent stock market rallies.

The new mood of caution chimes with comments from business leaders on Friday, who warned that the seeming green shoots in the economy had shallow roots, the Guardian said.

Report: Bank of England braces for 3rd wave of crisis - People's Daily Online

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