UK inflation has hit 3.5%, prompting Mervyn King to write a letter of explanation to the Chancellor.
Barclays has reported a 92% increase in full-year profits.
Axa Ethical Distribution fund manager Richard Marwood has added to financial stocks this month and offloaded almost all traditional gilts on concerns of inflation.
Managers say low return on cash and search for yield will support fixed income market
Fixed income managers prepare for sharp increases in UK interest rates over longer term, with move towards high-yield and floating-rate instruments
Earlier this month the Bank of England announced a halt to its quantitative easing programme. Other central banks also have complex exit strategies to undertake. But how successful has QE been and did it have the desired effects?
UK inflation is likely to have risen to around 3.5%, exceeding the Bank of England's (BoE) target for the third time.
Whether markets will be able to absorb the huge government debt issuance that will be forthcoming once the Bank of England's quantitative easing programme ends is a hot topic at the moment.
The Bank of England has frozen its quantitative easing programme and kept interest rates on hold.
What does the marked in rise in inflation to 2.9% mean for exposure to fixed interest funds.