Following on from yesterday's meeting between Mervyn King (Governor of The Bank of England) and the CEO's of Britain's leading banks, the Bank of England said that it would continue to offer an extra £5BN of one-week money on top of its usual repo auctions every week until its policymakers decided whether to change lending rates at their next monthly meeting on April 9.
The trouble is this is not enough.
The banks need to see that there is a plan co-ordinated between the central banks and governments of the key financial centres.
So far only the Fed and US has been proactive. There is, as yet, no co-ordinated plan.
Until there is one, the situation will continue worsen.
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