CPI inflation remained at 3.1% in September but the figure is still well above government targets.

The FTSE slid into negative territory in afternoon trading following news of a record month-on-month drop in house prices.

The Bank of England has resisted growing calls to deliver more stimulus to the economy while maintaining interest rates at the historic low of 0.5%.

UK GDP rose by 1.2% in Q2 as previously estimated, representing the biggest increase since the first quarter of 2001.

The IMF has broadly backed the Coalition Government's spending cuts and efforts to tackle the deficit.

Global stocks rallied on Friday on better eurozone news and stronger-than-expected manufacturing numbers in the US.

An increase in jobless claims in America exacerbated negative investor sentiment on Thursday, sending global stocks lower.

Fund manager Martin Gray has attacked the failure of governments to adequately overhaul financial regulation.

Dr Andrew Sentance remains the lone member of the Bank of England Monetary Policy Committee to argue for an increase in interest rates.

The UK has maintained its AAA credit rating largely thanks to the austerity measures of the coalition government, although it remains vulnerable over the long term.