Here is my favourite measures of the credit crunch - the three month interbank interest rate relative to the 3 month gilt repo interest rate.
As the chart illustrates, the credit crunch started in August 2007. Spreads peaked at over 100 basis points; September 2007, December 2007 and April 2008. As spreads peaked in April, the Bank of England introduced its special liquidity scheme. Since then, spreads have moderated slightly. Nevertheless, spreads continue to hover at 60 basis points. Before the crisis, spreads were invariably 12 basis points.
So the credit crunch continues. Does the Bank of England have anything else up its sleeve?