MPC

The Bank of England today held interest rates at 0.5% as fears over a sluggish economic recovery outweighed inflation concerns.

Ecclesiastical's Robin Hepworth has warned Western equity markets could fall as much as 10% when central banks finally act to tackle inflation.

The Monetary Policy Committee (MPC) are split 6-3 against a rate rise for the second month, with opinion divided on how to tackle soaring inflation without snuffing out growth.

WHY UK HAS REAL RATE PROBLEM

The Monetary Policy Committee's forecasts for UK real growth are too optimistic, while concern mounts over its inaction in raising rates to stem rising inflation, says Threadneedle's Mark Burgess.

The Traded Policies Fund invests in Traded Life Policies (TLPs), an asset class which has delivered smooth, predictable investment returns independent of interest rates, equities and commodities.

The UK could be entering a "profoundly different" era of slow growth and high debt reminiscent of the economic ills engulfing Japan, says the BBC's economics editor Stephanie Flanders.

Oil prices should fall back in the near term provided unrest is contained within Libya, says Schroders' CIO Alan Brown.

Bank of England governor Mervyn King has not ruled out another round of quantitative easing and has reiterated his belief the UK recovery will be choppy.

MPC SHOULD NOT RAISE RATES