Economics

The UK's consumer prices index fell to 1.9% in January, bringing it under the Bank of England's 2% target rate for the first time in four years.

It is "not unreasonable" for investors to anticipate a 2% base rate as early as 2016, but increasing rates is still considered a last resort to tame the housing market, according to Bank of England policymaker David Miles.

The Nikkei has closed 3.1% higher at 14,843 after the Bank of Japan (BoJ) said it would double the size of two lending programmes in a bid to prop up credit growth.

Britain must see a business recovery before interest rates can begin to rise, according to Mark Carney, the Governor of the Bank of England.

COMMENT

Weaker US data and ongoing expectations of tighter UK monetary policy have helped boost gold and sterling respectively as the dollar loses ground.

Lloyds CEO Antonio Horto-Osorio has been forced to defend his £1.7m bonus, claiming it is in the interests of the taxpayer.

Scottish first minister Alex Salmond has accused the three main UK parties of "bluff, bluster and bullying" after they rejected plans to share the pound with an independent Scotland.

The Chancellor of the Exchequer has warned Scotland it will lose the pound if it votes to become independent from the rest of the UK.

The Ruffer investment trust's protective assets have "earned their keep" so far this year, countering losses from its position in Japanese equities, the managers have said.