Financial Times FT.com

ECB steps up fight to safeguard liquidity

By Ralph Atkins in Frankfurt, Gillian Tett in London and Krishna Guha in Washington

Published: December 17 2007 19:10 | Last updated: December 18 2007 00:48

Emergency help for financial markets entered new territory on Monday as the European Central Bank announced it would on Tuesday offer unlimited funds at below market interest rates in a special operation to head off a year-end liquidity crisis.

The surprise move, which follows last week’s co-ordinated barrage of measures by the world’s central banks to increase market liquidity, suggests the ECB is still frustrated at the failure to ease financial market tensions.

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