Economics / Markets

The Bank of England will raise rates for the first time in four years in August in a bid to dampen inflation, according to the British Chambers of Commerce.

Barclays' decision to cut 500 positions in its corporate banking business has meant job losses in the UK banking sectors have hit almost 1,400 this week.

Business secretary Vince Cable has prompted a new confrontation with Chancellor George Osborne after warning Britain could face the "bomb" of a second financial emergency.

French finance minister Christine Lagarde has thrown her hat into the ring for the vacant top spot at the International Monetary Fund (IMF).

The global economy faces the risk of stagflation as rising commodity prices and slowing growth in China derail the recovery, said the Organisation for Economic Co-operation and Development (OECD).

The UK economy grew at 0.5% in Q1, in line with previous estimates, according to the Office for National Statistics (ONS).

The FTSE 100 was down in early trading as ongoing uncertainty about the Greek bailout hit markets and sent the euro lower against the dollar.

Sterling has recovered from a seven-week low, moving higher against the dollar after it fell on Moody's threat to downgrade a raft of UK banks.

Public borrowing surged to a record £10bn in April, according to the Office for National Statistics (ONS).

Bank stocks edged lower in early trading on Tuesday after credit ratings agency Moody's said it may cut its rating on 14 British lenders.