Economics / Markets

TOP PERFORMERS

A BUBBLE?

MEET THE GUV'NOR

SECTOR REPORT

Britain's top bank regulator has called for "ground rules" on lobbying to prevent it destabilising the financial system.

Chancellor George Osborne has said he will cap the country's welfare budget each year for the next four years from April 2015 - but the state pension will not be included.

The Investment Management Association (IMA) is canvassing fund groups on how to counter the "very significant erosion of trust in financial services" amongst consumers, and has proposed introducing a 'statement of principles' for members.

Outgoing Bank of England (BoE) governor Mervyn King has accused banks of attempting to influence financial regulation by putting pressure on senior politicians - including the Prime Minister.

A dramatic shift in the outlook for interest rates has been seen with money market indicators now pricing in a base rate rise to 0.75% in two years' time rather than three.

Former Chancellor Alistair Darling, who oversaw the bail-out of RBS and Lloyds in 2008, has urged the government to avoid a rapid disposal of taxpayers' stakes in the banking giants.