Bank of England

The successor to Mervyn King will have an "unduly powerful role" thanks to Treasury plans to extend the powers available to the Bank of England (BoE), one of the bank's advisers has warned.

The Bank of England's Monetary Policy Committee (MPC) voted unanimously to keep rates on hold and maintain QE at £375bn in August but expressed fears over sterling's continued appreciation.

UK CPI inflation has risen to 2.6% in July, up from 2.4% in June, surprising economists who had expected a fall to 2.3%.

STRATEGY

In its latest quarterly inflation report, released today, the Bank of England has muddied the waters somewhat on its plans for further stimulus, leaving pundits wondering if a rate cut is on the cards.

The Bank of England has cut its forecast for economic growth this year to almost zero and has predicted inflation will be below target in the medium term.

The Bank of England (BoE) is set to cut economic growth forecasts to almost 0% for this year, amid a deepening double-dip recession.

Investors' ongoing fears over the state of the global economy will continue to support bond fund demand in the short term, overshadowing concerns from the regulator they could exit en masse, managers have said.

ONE TO WATCH

The Bank of England has held interest rates at 0.5% for the 41st consecutive month and kept its bond-purchase target at £375bn.