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Financial markets

Volume 469: debated on Tuesday 11 December 2007

To ask the Chancellor of the Exchequer what plans he has to ensure liquidity in the financial markets following recent instability in the UK financial sector; and if he will make a statement. (163546)

As the Governor made clear in his statement to TSC on 29 November, the Tripartite authorities keep conditions in international and UK financial markets under constant review. On 29 November the Governor of the Bank of England told the Treasury Committee of actions the bank is taking to assure banks of liquidity over the forthcoming year-end. The Federal Reserve and the European Central Bank have announced similar measures. The bank stands ready to take further measures in order to keep overnight rates in line with bank rate.