Central banks announce liquidity boosting measures
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AP
Published: October 13, 2008
Five central banks, including the Federal Reserve and the European Central Bank, announced Monday new measures aimed at thawing frozen credit markets and bolstering funding to banks.
The Bank of England, the European Central Bank and the Swiss National Bank said in a joint statement they will provide unlimited short-term U.S. dollar funds to financial institutions through
tenders at seven-day, 28-day and 84-day maturities at fixed interest rates.
To accommodate the operations, the Federal Reserve says it will increase the sizes of its temporary currency swap facilities “so that these central banks can provide U.S. dollar funding in
quantities sufficient to meet demand.”
The swap arrangements have been authorized through April 30.
The Bank of Japan said it is considering similar measures.
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