Bank not participating in liquidity actions

Fri May 2, 2008 4:52pm BST

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LONDON (Reuters) - The Bank of England said on Friday it was not joining other major central banks in injecting dollars into financial markets.

"We have not been seeing evidence that the London market is short of dollars and so we did not see a need for the bank to participate," a Bank spokeswoman told Reuters.

"But we did know about the announcement and are supporters of the effort of other central banks in the money market."

The U.S. Federal Reserve said on Friday it was stepping up the amounts offered in its Term Auction Facility auctions, which are held every two weeks, to $75 billion (38 billion pounds) from $50 billion, starting from May 5.

The European Central Bank and Swiss National Bank also stepped up their U.S. dollar auctions.

(Reporting by Matt Falloon)

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