{"id":2459,"date":"2007-11-01T15:44:18","date_gmt":"2007-11-01T15:44:18","guid":{"rendered":"https:\/\/mmm.9dotdigital.ca\/?p=2459"},"modified":"2025-03-27T15:48:30","modified_gmt":"2025-03-27T15:48:30","slug":"rock-loan-up-again-boe-drains-liquidity","status":"publish","type":"post","link":"https:\/\/mmm.9dotdigital.ca\/?p=2459","title":{"rendered":"Rock loan up again; BoE drains liquidity"},"content":{"rendered":"<p>&ldquo;Other assets&rdquo; on the Bank of England&rsquo;s balance sheet rose by a further &pound;2.2 billion in the week to Wednesday 31st October, bringing the cumulative increase since 12th September to &pound;22.8 billion. This is the best available estimate of the extent of the Bank&rsquo;s support to Northern Rock. <\/p>\n<p>The weekly rise is the smallest since the Rock crisis broke but follows a &pound;4.7 billion gain last week. With deliberations on Northern Rock&rsquo;s future dragging on, the loan seems likely to grow further and may approach &pound;30 billion &ndash; the amount requested from the Bank by Lloyds TSB as a condition of its aborted rescue takeover. <\/p>\n<p>The balance sheet figures also show the Bank has drained liquidity from the banking system over the last week, with reserves falling from &pound;24.1 billion to &pound;20.0 billion. This action seems inappropriate given that interbank interest rates remain high relative to Bank rate and suggests the Bank has yet to learn the lessons of recent events. <\/p>\n<p><span class=\"full-image-float-none\"><img decoding=\"async\" style=\"width: 500px; height: 300px\" alt=\"BankOfEnglandOtherAssets.jpg\" src=\"\/storage\/BankOfEnglandOtherAssets.jpg\" \/><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&ldquo;Other assets&rdquo; on the Bank of England&rsquo;s balance sheet rose by a further &pound;2.2 billion in the week to Wednesday 31st October, bringing the cumulative increase since 12th September to &pound;22.8 billion. This is the best available estimate of the extent of the Bank&rsquo;s support to Northern Rock. The weekly rise is the smallest since [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-2459","post","type-post","status-publish","format-standard","hentry","category-money-moves-markets"],"_links":{"self":[{"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=\/wp\/v2\/posts\/2459","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=2459"}],"version-history":[{"count":1,"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=\/wp\/v2\/posts\/2459\/revisions"}],"predecessor-version":[{"id":4768,"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=\/wp\/v2\/posts\/2459\/revisions\/4768"}],"wp:attachment":[{"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2459"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2459"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2459"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}