The Bank of England has said it is prepared to cut rates further and expand its quantitative easing programme should the current downward slide in inflation worsen materially.
The yield on a 10-year UK government bond fell to a new record low below 1.4% on Thursday after comments the Bank of England is in 'no rush' to raise interest rates.
Bank of England Governor Mark Carney has warned the eurozone could sink further into its 'debt trap' as austerity measures choke off growth.
Sterling fell against the euro and the US dollar as the latest Monetary Policy Committee (MPC) minutes revealed a unanimous vote against hiking interest rates.
New documents show the Bank of England was seemingly unaware of the impending financial crisis in the weeks prior to its emergence.
The government will fail to deliver planned spending cuts within the next Parliament and interest rate rises are off the table until summer at least, according to a survey of economists.
UK inflation is likely to remain below target for longer, but some members of the Monetary Policy Committee (MPC) see possible risk factors that could cause it to overshoot its 2% target in the coming year.
The Federal Reserve may have to resort to an 'aggressive' rate hike as a consequence of stalling the decision for too long, according to Schroders' Strategic Bond fund manager Gareth Isaac.
The Bank of England has announced significant changes to the running of its Monetary Policy Committee (MPC) in response to an independent review of its practices.