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Bank Of England To Pump $20.6 Billion Into Money Markets To Offset U.S. Credit Crunch

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The Bank of England said Thursday it would pump 10 billion pounds (13.9 billion euros, 20.6 billion dollars) into money markets amid the ongoing credit crunch sparked by the US subprime loan crisis.

The move comes as the British central bank's governor Mervyn King warned there was a risk of a more substantial credit squeeze in the coming months.

The US subprime loan crisis was sparked by a growing number of Americans with patchy credit histories failing to meet payments on their mortgages.

Read the whole story at AFP