Bank injects £5bn into money market

THE Bank of England moved to pump £5 billion into frozen money markets today as London's leading shares tumbled on the latest impact of the credit crunch.

THE Bank of England moved to pump £5 billion into frozen money markets today as London's leading shares tumbled on the latest impact of the credit crunch.

Policymakers made the move to ease overnight lending rates between banks spooked by the bail-out and the cut-price sale of troubled investment bank Bear Stearns.

London's FTSE 100 Index fell more than 2.5% as leading banks such as Halifax Bank of Scotland and Barclays bore the brunt of the sell-off.