Banks Snap Up Pounds 15bn as Retail Sales Fall; IN ASSOCIATION WITH Rensburg Sheppards Investment Management Market Comment Shops Gloom Drives Hopes of New Interest Rate Cut Market Watch

Daily Post (Liverpool, England), April 16, 2008 | Go to article overview

Banks Snap Up Pounds 15bn as Retail Sales Fall; IN ASSOCIATION WITH Rensburg Sheppards Investment Management Market Comment Shops Gloom Drives Hopes of New Interest Rate Cut Market Watch


Byline: BY ALEX TURNER

BANKS once again snapped up all of the wholesale bank funding offered by the Bank of England in its latest auction held yesterday.

The central bank offered pounds 15bn and received offers for pounds 15.15bn from lenders who are suffering from the credit crunch.

However, unlike the previous auction last month - when the Bank of England received bids totalling pounds 16.9bn for pounds 10bn of funding - lenders received almost all of the money they were seeking.

The central bank has lifted the funding available to borrow for three months to pounds 15bn this month, with financial institutions still reluctant to lend to each other following the credit crunch. The rate at which banks lend to each other for three months is almost 1% above the Bank's official 5% base rate.

The Bank of England figures showed some financial institutions more in need of the money than others, with the highest bid for the money at a rate of 5.84%, compared with an average of 5.25%.

This is particularly high because the money is to be lent for three months and markets are currently expecting another cut in interest rates to 4.75% by June.

The lowest bidder for the funds, who bid below the Bank's current 5% base rate, received nearly 90% of the cash it demanded.

The identities of those taking part in the Bank's auctions are kept secret to avoid concerns spreading through stock markets.

Banks could bid for maximum of 20%, or pounds 3bn, of the funding on offer.

Central banks across the world have made increasing efforts to address the credit crunch in recent months by making more cash available to banks.

The Bank of England warned of "worsening conditions" in credit markets last week as it cut rates.

The higher borrowing costs have fed into more expensive mortgage deals for many homeowners, despite three rate cuts in five months from the Bank of England.

Prime Minister Gordon Brown yesterday held talks with bank chiefs at Downing Street to urge them to pass on the cuts to hardpressed customers.

And the likelihood of further interest rate cuts has increased this week after March retail sales figures sparked fears over the health of the high street.

The latest figures from the British Retail Consortium (BRC) revealed that like-for-like sales fell by 1. …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • A full archive of books and articles related to this one
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Banks Snap Up Pounds 15bn as Retail Sales Fall; IN ASSOCIATION WITH Rensburg Sheppards Investment Management Market Comment Shops Gloom Drives Hopes of New Interest Rate Cut Market Watch
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

    Already a member? Log in now.