The European Central Bank said on Monday it had allotted €30bn ($42.04bn) in one-day liquidity to counter financial turmoil in the wake of the crisis in the US banking system, while the Bank of England said it would offer £5bn of extra reserves to help stabilise conditions in the sterling money markets.

The ECB said it had alloted the money at a marginal rate of 4.30 per cent and an average rate of 4.39 per cent. Altogether 51 banks bid €90.27bn. Earlier, using language similar to that previously used to signal possible intervention in financial markets, the Frankfurt-based institution said it “continues to closely monitor the conditions in the euro area money market”.