Loans and Finance

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News and information about loans, money, debt, finance and business issues.

Monday, April 14, 2008

The Awakening

The Bank of England and the government appear to be finally showing signs of stirring, as the credit crisis continues to wreak havoc with the world's financial markets and the lives of ordinary people not connected to the City.

The Bank of England will tell mortgage lenders, at a summit next week with Alistair Darling, to pass on interest-rate cuts to their customers. Their reward for doing so will be easier and longer loans from the Bank of England.

The Bank will tell banks and building societies that they will be able to use a wider range of assets as security for loans, and will no longer have to rely on top-rated mortgage securities.

The Bank will also follow the US Federal Reserve in offering more three-month loans to banks rather than concentrating on shorter terms.

Let us see if this is going to be enough, and whether the market can wait another week for it to be told this.

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