Bank of England Forced Into Action
It has been a tough week for the Bank of England. After standing aside when the credit turmoil unfolded in late July, the Bank of England has finally been forced into action.
Last week they bailed out Northern Rock and this week they infused more than $20 billion into the banking system. Central Bank Governor King faced tough criticism for his late action, but he has defended himself by blaming legislation. Despite the problems at Northern Rock, the UK economy remains relatively healthy in comparison to the US economy. Retail sales and money supply were stronger than expected. GDP, Housing and Consumer Confidence dominate the calendar next week. No big surprises are expected there.
Written by Kathy Lien, Chief Currency Strategist of DailyFX.com
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