Thursday, September 18, 2008
Central bank intervention calms the markets
Posted by David Smith at 02:00 PM
Category: Thoughts and responses

For the first time in several days the markets have been calmer, thanks to this morning's announcement of a co-ordinated injection of liquidity by the world's leading central banks, $180 billion in all. The Bank of England's announcement on the intervention is here.

Meanwhile, the Office for National Statistics announced a surprise 1.2% rise in retail sales last month, details here. Sales over the latest three months were still down by 0.8% over the previous three, though that could change with the September figures. Not for the first time in recent months, the official figures have caused surprise. One interpretation is that it is the effect of Europeans taking advantage of the strong euro and shopping in Britain. Or they could just be wrong ...