Economics / Markets

Andrew Sentance has predicted inflation could rise above 5% this year and repeated his calls for a gradual increase in interest rates and cutting off of monetary stimulus.

Inflation increased at its fastest pace in more than two years last month, mounting further pressure on the Bank of England to hike interest rates.

European stock markets are subdued in early trading and have been unable to mirror the overnight gains made in Asia and the US.

Forecasts for corporate earnings growth in Europe and leading emerging markets are being scaled back by analysts.

The "wrong kind of inflation" will mean the government has to borrow significantly more over the medium term than planned, George Osborne will be forced to admit in the Budget.

Households are suffering their biggest drop in living standards for 30 years, according to a report by the Institute for Fiscal Studies (IFS).

The Chancellor will use Wednesday's Budget to announce the biggest clampdown on tax avoidance since 2004, raising twice as much as the £500m a year predicted when the initiative was launched last December.

Financial technology providers 1st Exchange, N4 and Screen Business are to be rebranded as Avelo from 4 April.

Public borrowing is forecast to be lower this year in a sign the government is gaining control of the public finances.

Global markets have been boosted by news of a ceasefire in Libya, rising oil prices and intervention by the G7 nations to suppress the value of the yen.