...ecide within weeks whether to pump billions more into the economy as evidence mounts that the £37 billion part-nationalisation last year has failed to keep credit flowing. Options include cash injecti
ons, offering banks cheaper state guarantees to raise money privately or buying up “toxic assets”, The Times has learnt.
The Bank of England revealed yesterday that, despite intense pressure, th
e banks curbed lending in the final quarter of last year and plan even tighter restrictions in the coming months. Its findings will alarm the Treasury.
The Bank is expected to take yet more aggr...