Economics / Markets

The drop in inflation announced yesterday has paved the way for the Bank of England to go through with another round of quantitative easing (QE) as early as next month, reports suggest.

The UK's inflation rate posted another surprise drop in May, falling to 2.8%, as the lack of activity in the UK continues to bring prices down sharply.

Moody's has downgraded the credit ratings of five of the Netherlands' largest banks as the country's economy struggles with a domestic recession and the effects of the eurozone crisis.

FIVE THINGS

Asian markets jumped overnight and European exchanges are expected to open strongly after pro-bailout party New Democracy scraped a narrow win at the Greek election.

UK bank shares have jumped following last night's announcement of a £100bn stimulus package for the UK economy.

The Bank of England (BoE) is to launch new stimulus packages in a bid to get the economy moving again.

The government has confirmed its plans to force banks to ring-fence their retail operations, as well as other measures recommended by the Independent Commission on Banking (ICB).

Spanish government bond yields have shot through the danger level of 7% as fears grow its debt could soon be rated as junk.

Alistair Darling has refuted claims the lastgovernment rejected advice which could have prevented the run on Northern Rock.