Bank to pump extra cash into money markets

The Bank of England will today pump an extra $30bn (£16.8bn) into frozen money markets in its latest bid to ease the financial crisis.

The funds - available to banks for one week - come on top of $40bn (£22.5bn) injected since last Friday as banks scared of losses hoard cash.

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The rate at which banks will lend to each other has soared in the current turbulence, and jumped again yesterday after US plans for a $700bn (£392bn) bank rescue was voted down on Monday night.