Bank of England

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.

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

Markets are hoping for further economic stimulus as the European Central Bank and the Bank of England embark on policy meetings later today.

A top Bank of England economist has said his profession should take part of the blame for the financial crisis, according to the Telegraph.

Developed nations are stuck in a "never-ending cycle of recession" which will lead to a huge growth crisis in the summer of next year, Ignis' chief economist Stuart Thomson has warned.

Last week the yield on UK gilts dropped below US treasuries as the Bank of England's quantitative easing programme continued to impact the market.

The Bank of England said it may reconsider the case for cutting interest rates once the impact of the new funding for lending scheme becomes clear.

Bank of England deputy governor Paul Tucker came under fire again today as an email emerged showing he had discussed LIBOR rates with HSBC and RBS, as well as Barclays, back in 2008.

Bank of England governor Mervyn King will appear before MPs at the House of Commons this morning to give evidence on the UK's financial stability and the state of the economy.