By Angela Monaghan Last Updated: 1:07am GMT 27/02/2008
The Bank of England's Deputy Governor today warned that the ongoing credit crunch had left the Monetary Policy Committee uncertain as to its next move as it and fellow central banks face up to what she described as the "largest ever peacetime liquidity crisis".
Addressing the Institute of Economic Affairs, Rachel Lomax said that the credit crisis that erupted last summer was still evolving, with a new problem surfacing on a weekly basis. She said: "Each week seems to highlight some new dimension of the ensuing disruption to core financial markets.
"Clearly the situation is still developing. And its impact on the wider economic outlook - global and domestic - will depend critically on what happens from now on. Here there are some major uncertainties."
Bank of England Liquidity Crisis
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Posted - 02/27/2008 : 20:09:35
