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UK Economics Weekly

UK Economics Weekly

Should the MPC follow the ECB’s example?

Last week’s Bank of England figures showed that bank lending to firms and households fell in December, while conditions in bank funding markets have continued to get worse. In contrast, LIBOR spreads in the euro-zone have been narrowing – suggesting that one option for the Bank of England would be to follow the ECB’s example in providing more generous liquidity to banks.

 

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