Here is another big news for U.K resident:

THE Bank of England says it is discussing with other central banks how to “ease the strains” in financial markets, although it is not considering requiring taxpayers to assume credit risks.

Britain’s central bank said it was not among the banks that the Financial Times reported were contemplating the purchase of mortgage-backed securities to smooth lending to consumers after a worldwide surge in borrowing costs. The US Federal Reserve also denied it was in discussions to buy such debt.

Well I’m not sure about this but the bank has been criticised by financial institutions for not doing enough to ease conditions in money markets. Its governor, Mervyn King, offered an extra £5 billion ($11 billion) in loans to banks on Thursday, the first move of its kind in six months to push the cost of borrowing by banks closer to the 5.25 per cent benchmark rate. Mr King will discuss his strategy at a parliamentary hearing on Wednesday.

The surge in credit costs has choked off lending to consumers in Britain, especially for new home loans. Banks including Alliance and Leicester, Bradford and Bingley and HBOS have withdrawn loan offers and raised the cost of borrowing in recent weeks.

Why?
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