European Central Bank Puts $40B More Into Market

With money markets still moribund, the ECB acts to stimulate lending
By Jim O'Neill,  Newser User
Posted Sep 22, 2008 7:31 AM CDT
In this July 3, 2008 file photo, Jean-Claude Trichet, President of the European Central Bank ECB, reacts during a news conference in Frankfurt, central Germany.    (AP Photo/Daniel Roland)
camera-icon View 3 more images

(Newser) – The European Central Bank is promising another $40 billion influx of cash to help shore up fluttering money markets among banks on the continent, reports the AP. The ECB said it will announce its lending rate and the number of bidders later today.

Central banks in Europe, Britain, Japan, and the US last week poured billions of dollars into the market as the AIG bailout and the failure of Lehman Brothers tightened global credit markets—and even lending between banks—to the point  of near standstill. The ECB today said it would “take appropriate steps to address the ongoing pressures."