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Billions to ease credit crunch

By Katie Razzall

Updated on 11 March 2008

Central banks are to pump billions of pounds into money markets to tackle the credit crunch, as Katie Razzall reports.

The emergency cash, including $100bn from the US Federal Reserve and £10bn from the Bank of England, is aimed at cutting the cost of lending between banks.

The banks have been reluctant to loan money to each other, which has caused the rate to creep up.

That has affected consumer spending, investment - and the housing market.

So have the banks done enough to help?

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