Bank of England

Monetary Policy Committee (MPC) hawk Andrew Sentance is calling for a 0.5% rise in the Bank of England base rate, a greater hike than he has lobbied for previously.

The Chancellor has defended the Bank of England over rising inflation and denied the government is making its job more difficult.

Sterling fell against the dollar and the euro after the Bank of England downgraded its economic growth forecast for 2011.

A series of quarter-point interest rate hikes will begin in May, according to analysts examining Bank of England governor Mervyn King's latest obligatory letter to the Chancellor.

The UK inflation rate rose to 4% in January, which is double the government's target and up from 3.7% the previous month.

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.