FT notes :
“the big four UK banks cut interbank loan volumes by more than 24 per cent to £10.5bn in the three months to the end of September, reflecting a sharp increase in the level of nervousness towards lenders across the southern eurozone. The sharpest reductions were in the volume of loans to Greek and Spanish banks, continuing an earlier pattern, but the Italian loan slump was new.”
BoE’s Weale interviewedby FT:
there’s very strong case for extending BoE’s QE2 next year unless the outlook improves. Is significant as he used to be a hawkish dissenter, until he saw the light. Said it was “perfectly possible” the economy was already contracting and investors were right to conclude from Wednesday’s inflation report that the target for asset purchases could be raised beyond the current GBP 275 bn.