Bank of England

The pound has gained against the euro ahead of Wednesday's Bank of England inflation report, which is expected to show inflation has hit over 4%, increasing pressure on the Bank to cut rates.

Schroders' Richard Buxton believes the Bank of England will hold off on raising interest rates this year despite his forecast inflation could reach 5%.

The Bank of England has held interest rates at 0.5% and kept its quantitative easing programme at £200bn.

Kate Barker, a former leading member of the Bank of England's MPC, has warned the UK economy could be only part way through the financial crisis.

The governor of the Bank of England has recently warned we in the UK are living through the longest and worst squeeze on real incomes any of us have ever witnessed.

There is a "real chance" the Bank of England will raise interest rates as early as next week, says Skandia, with subsequent hikes pushing rates up to 3% by the end of next year.

Sterling rose to a fresh three-month high versus the dollar this morning after UK services data came in above expectations.

The Bank of England may have to put up interest rates if the commodity price boom continues, deputy governor Charles Bean warns.

BILL MOTT ON INFLATION

The Bank of England topped up Governor Mervyn King's pension pot by £1.4m after deciding to award him an early payout in 2008.