The Bank of England will lend banks an extra £15 billion over three months and said further action could follow to help ease the credit crunch.
The BoE's upcoming April 15 operation follows auctions of £10 billion in December, January and March as part of the joint efforts to improve liquidity in the financial system.
'Further measures will be announced in due course following discussions with interested parties which are continuing,' the central bank said in a statement.
'The Bank is committed to providing the liquidity assistance that the system as a whole needs to function normally.'
The announcement comes ahead of an expected British interest rate cut on Thursday as policymakers use an array of policy tools to stave off the economic impact of the lending squeeze while trying to encourage banks to lend to each other.
