The Bank of England’s plan to back £80bn in new loans to non-financial companies has received a positive reaction from analysts, but many are hoping that it is just the first step in a global response from central banks to bring confidence to the markets.

Bank of England Governor Sir Mervyn King and Chancellor of the Exchequer George Osborne last night unveiled a plan to inject liquidity into the UK economy at a Mansion House speech that proposed a funding-for-lending scheme, which will see the BoE providing cheap money to banks on the condition that they boost lending to non-financial businesses and households.