UK Treasury denies plan to print more cash
Reports in the British press that the Government is considering printing more money as a tactic to tackle the credit crunch have been strenuously denied by the Treasury. Although rumours that such a step was being considered once interest rates drop close to zero were described by Treasury sources as not having been ruled out, it is not currently on the agenda. In an interview with the Financial Times this week, Chancellor Alistair Darling indicated the Bank would have to work "hand in hand" with the Treasury if it wanted to carry out "quantitative easing" - or printing money. Mr Darling said the Treasury would have to be involved in any decision to take the further step of printing money to buy assets. Such action, he said, "could only be done with the Treasury and the Bank of England working hand in hand, because the two responsibilities just become so close you have to operate together."