New Star economist Simon Ward is advocating joint action between the Bank of England and the Debt Man...
New Star economist Simon Ward is advocating joint action between the Bank of England and the Debt Management Office (DMO) to ease the banking liquidity crisis. He said the pair should jointly offer up to £40bn of longer-term funding to banks to finance mortgage lending. The action should include a further shift in the Bank’s market operations towards longer-term lending and a widening of the definition of eligible collateral for all longer-term operations to include mortgages. Meanwhile the DMO should immediately repay remaining government borrowing from the Bank to release funds for a...
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