The Bank of England wants the economy and financial system of the United Kingdom prior to the aggravation protect the euro crisis. These are the banks of the country get easy money - provided they pass it on to businesses and consumers.
Britain is bracing itself for the impact of the euro crisis. The government in London wants the banks of the country put money on favorable terms available to stimulate the economy. Banks should be supplied with cheap loans in order to give themselves more money, announced Finance Minister George Osborne and Central Bank chief Mervyn King.
"We are not powerless in the face of the mountain of debt of the euro zone. Together we can provide enough resources to defend our economy against the crisis on our doorstep. We make loans for families available who want to buy their own home, and for companies whose businesses want to expand. We give the banks liquidity, "said Osborne.
Money should be spent
It's about 80 billion pounds, almost 100 billion euros, the banks are to receive low-interest, ie at a rate that is below market rates. You get the funds but only if they demonstrate that they themselves sufficient to lend to businesses and consumers.
Flow is the money in the coming weeks. Central Bank chief King described the situation as seriously: "A black cloud has the mood deteriorated, shall be so prepared that businesses and households that are ahead of them storms The result is that lower consumption leads to lower incomes, and this leads to. poorer prospects for growth. "
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The UK banks are to receive in an emergency short-term loans.
King also pointed out that the economic outlook has deteriorated in other major countries, as the examples he cited China and Brazil. The central bank will provide the company with short-term low-interest loans when collateral to be deposited.
Assistance only for their own country
The British government has in recent weeks repeatedly called on the countries of the Euro-zone, and finally address the problems to solve. London, but refuses to contribute financially to relief efforts for at-risk countries.
Britain is suffering even in a recession, but this leads back to the problems of the Euro-zone. To help the ailing since the 2008 financial crisis the banking sector, the Bank of England has its key rate already some time ago to a record low of 0.5 percent cut. In addition, it has been bought bonds worth 325 billion pounds in order to help the banks to liquidity.
The head of the Bank of England was now aggressively, "We can in the United Kingdom and are coming around But it would be naive to pretend as if any of us now knows when the storm from overseas going past and the economic sky. again, cheers. " The British, so expect that they will not suffer for a while by the crisis in the euro zone.
