Economics

Cazenove Capital's Richard Jeffrey looks at what the European Central Bank's latest policy move means for markets.

Investors may see UK interest rates rise earlier than the 2015 date priced in by the markets, the Bank of England governor Mark Carney and the MPC have warned, but some economies have to cope with much higher rates.

European markets climbed this morning following the release of a dovish statement from the Federal Reserve about the growth outlook for the world's largest economy.

The FTSE 100 was higher by mid-morning despite this morning's data from the ONS revealing a greater than expected fall in the rate of CPI inflation.

UK Consumer Prices Index (CPI) inflation fell in the year to May, after the previous month saw its first climb in 10 months.

The International Monetary Fund has urged the US Federal Reserve to keep interest rates lower for longer after downgrading its forecast for the country's growth rate.

QE is here to stay

‘The BRIC concept is a distraction’

Investors are moving back towards safe haven assets such as gold as ongoing violence in Iraq hits markets.

Housebuilder stocks have fallen and the pound is nearing 1.70 against the dollar as investors react to Mark Carney's change of tack on interest rates and new measures that may curb mortgage borrowing.