Posted on 12/18/2007 4:49:11 AM PST by DeaconBenjamin
(RTTNews) - The European Central Bank took another dramatic step in shoring up banks with ample credit through the end of the year on Tuesday, offering more than 348 billion euros (500 billion dollars) in a two-week refinancing operation.
The cash injection was made available at at fixed rate of 4.25 percent and was intended to encourage lending by struggling commercial banks to businesses and consumers.
On Monday, the European Central Bank said it would lend banks an unlimited amount in two-week funds in its weekly refinancing auction, adding that the funds would be available below 4.9 percent. Earlier in the day, the Federal Reserve began an auction of 20 billion dollars in credits in order to encourage gun-shy banks to lend to businesses and consumers.
Lending by commercial banks has come to a grinding halt since the US subprime market collapsed.
(Excerpt) Read more at nasdaq.com ...
Cut rates.....
Afraid of deflation?
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