Economics

The "wrong kind of inflation" will mean the government has to borrow significantly more over the medium term than planned, George Osborne will be forced to admit in the Budget.

Global markets have been boosted by news of a ceasefire in Libya, rising oil prices and intervention by the G7 nations to suppress the value of the yen.

As investors, we all look back with 20-20 vision at the excesses of the TMT bubble, incredulous we could have allowed valuations to get so far adrift of economic reality.

The yen suffered the biggest decline in more than two years against the dollar on Friday after the G7 group of leading industrial nations moved to rein in the currency.

UK banks have about £136bn of exposure to crisis-struck Japan, but it is "too soon" to judge the full hit to Britain's financial sector, the FSA says.

The UK's economic recovery slowed in the second half of last year and will remain 'subdued' throughout 2011, the Organisation for Economic Co-operation and Development (OECD) predicts.

The Reserve Bank of India has raised interest rates to fight rising consumer prices in the country.

FSA chairman Lord Turner last night said the amount of high quality capital banks should hold as a risk buffer should be double the current requirement.

Members of the Bank of England court revealed yesterday they are "uncomfortable" with governor Mervyn King's involvement in politics.

UK blue chips made small gains in early trading after heavily sold-off Japanese shares ended a three-day rout to climb sharply overnight.