Around the horn in europe ! Note deposits at the ECB hit a new record of 528 billion today

From the Guardian Live blog ....

10.22am: Breaking news -- the International Monetary Fund is reportedly planning to boost its resources by $1 trillion.

Bloomberg is quoting an unnamed official from "a Group of 20 nation", who says the increased funding would be used to 'save the eurozone'. However, any deal would not be agreed until the EU had agreed its new 'fiscal compact'.

The report, released in the last couple of minutes, send the euro and shares rallying -- despite this being a single report from an unnamed official.

Last night, of course, Christine Lagarde announced that the IMF was ready to start looking for more funding. She said:

I welcome the recognition of the importance of ensuring adequate Fund firepower to help defuse the current global economic weaknesses and regional challenges. To this end, Fund management and staff will explore options for increasing the Fund's firepower, subject to adequate safeguards.

Whether the IMF's members will be prepared to offer more funding, though, is unclear...

and.....

10.02am: The Czech central bank governor has just admitted that he is planning for the break-up of the eurozone, just in case.

Speaking in Vienna, Miroslav Singer said he was considering the possibility that the euro might survive the crisis, but insisted that the Czech Republic would not need a "big plan". He said:

We are thinking about what can happen, but I don't believe - given our capital and foreign trade position, that we need to have some big plan.

You could argue that it would be remiss of a central bank governor not to plan for the break-up of the eurozone, but I suspect his comments won't go down too well in certain quarters.

Singer also predicted that Austria would achieve "growth of around zero this year" - clearly he comes from the 'glass half-full' school of economics.

and.....

8.28am: The relentless rise of overnight deposits at the ECB continues apace, with yet another new peak of €528.2bn, up from €502bn.

New records have been set almost daily in the weeks since the ECB pumped almost €500bn of cheap loans into the financial system in an attempt, so far unsuccessful, to avert a new credit crunch.

As my colleague Graeme Wearden pointed out on Tuesday, the European Central Bank has denied that the banks who took these loans are now simply lending the money back to the central bank. However, the data is a sign of unease in the financial system, with banks clearly happier to leave their excess capital in the ECB's vaults (where it will attract a very low interest rate) rather than engaging in the risky activity of lending to each other or to the wider economy.