August 21st 2007
Pound Weakened After Large BoE Loan
Although it is not known whether the Bank of England loaned £314 million to one borrower or many yesterday, the effects were still the same. A one-day loan of such magnitude weakened the domestic currency, if only temporarily. As experts point out, this isn’t entirely unusual and the economy has survived much larger Bank of England loans. Reports Forbes:
Significantly more than 314 mln stg this [sic] has been borrowed in one day in the recent past — for example nearly 4 bln stg on June 29 and 2 bln on July 2, he [George Buckley] added.