Bank of England

Inflation is set to fall below its 2% target - even if interest rates remain at their record low, the Bank of England said in its quarterly inflation report.

The Bank of England (BoE) today kept interest rates at a record low of 0.5% as uncertainty remains over who will govern Britain.

Bank of England Governor Mervyn King believes interest rates in Britain will stay lower for longer than the markets expect to compensate for the fiscal pain ahead.

GLG Partners is preparing to soft-close Jason Mackay and John White's UK Alpha Select Ucits fund as it has hit its target of $300m (£195m) in assets under management.

Taxes must rise sharply over the next decade to bring down borrowing, according to the National Institute of Economic and Social Research (Niesr).

Some UK equity fund managers are taking risk off the table in the belief Britain is facing a double-dip recession, following lacklustre GDP figures released last week.

The Bank of England's Monetary Policy Committee (MPC) voted unanimously to hold fire on any changes to interest rates this month, but some members are growing increasingly concerned about inflation.

The Bank of England's fantasy forecast of a decline in annual CPI inflation to about 1% in early 2011 looks even less credible in the wake of March numbers showing an unexpectedly large rise from 3% to 3.4%.

Inflation rose to a higher-than-expected 3.4% in March, according to the Office for National Statistics.

Interest rates have been kept on hold at 0.5% by the Bank of England.