Mervyn King to continue talks
The Bank of England chief's announcement came after he met representatives of the UK banking industry.
The
banks demanded action to calm the marketsand wanted assurances that the
BoE will provide extra financial help should it be needed.
"The
Bank of England and the banks agreed to continue their close dialogue
with the objective of restoring more orderly market conditions," the
BoE said in a statement.
The FTSE 100 closed down 50.4 points at 5495.2 before the announcement was made.
Earlier the BoE made another £5bn available to lenders, taking the total on offer at its
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