The Bank of England said Wednesday that it received no bids during an auction for 10 billion pounds (20 billion dollars, 14 billion euros) of emergency funds made available amid the global credit squeeze.
The BoE last week pledged to inject liquidity into the three-month interbank money market in the wake of a financial crisis at British lender Northern Rock, which is struggling to borrow money from financial institutions. A BoE spokesperson said Wednesday's auction was designed as a "safety valve in the light of concerns that arose about potential pressure in the banking system more generally as a result of Northern Rock." "Since the announcement there has been a significant fall in the three month interbank rate which made the auction look expensive," the spokesperson added.