The Bank of England's auction to sell off £10 billion of funds to provide greater liquidity in the financial markets received no bids, which, according to one expert, shows measures taken by the institution have been "effective".
Laurance Mutkin of Morgan Stanley told BBC Radio 4's PM programme that the Bank made money available to financial institutions at a "relatively expensive" rate, compared with the "inter-bank" market.
The conditions attached to the auction would have made it more attractive to banks to borrow money from elsewhere, Mr Mutkin said, although he denied that their refusal to borrow from the central bank was a negative sign.
"I think on the contrary it sort of suggests that what the Bank of England has done and the measures it has taken have been effective in ensuring that the banks don't need to take this emergency funding," he said.
The Bank's auction was to provide funds at a three-month maturity against a greater range of collateral than it would usually provide during weekly market operations.
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