Economics / Markets

The Bank of England's Monetary Policy Committee will tolerate missing the inflation target for the next two years in order to support the UK recovery, said Bank governor Mervyn King.

The UK will avoid falling into a 'triple dip' recession but external forces still threaten the economy, according to the Confederation of British Industry (CBI).

TCF

UK CPI inflation stood at 2.7% for the fourth consecutive month in January, but fears over longer-term forecasts sent sterling to a six month low in early trading.

CHINA'S YEAR OF THE SNAKE

FIVE THINGS

Firms are "cautiously optimistic" about the future, according to the Institute of Financial Planning (IFP), though some are still struggling to implement changes to their back office systems post-Retail Distribution Review (RDR).

European leaders are set to announce a long-term deal that would see the EU budget cut, in real terms, for the first time since the European Union was created.

Europe's Markets in Financial Instruments directive (Mifid II) distinguishes between independent and restricted advice, meaning a separate trade body for IFAs is still necessary, according to the founder of the IFACentre.

The Bank of England's Monetary Policy Committee (MPC) has said inflation may remain above the 2% target for the next two years, in part due to sterling weakness.