Economics / Markets

Inflation will stay "stubbornly high" this year, pressuring the Bank of England to up interest rates from the second quarter, the Confederation of British Industry (CBI) says.

China has raised interest rates for the third time in four months in an attempt to cool inflation.

The government says it will increase the levy on bank profits to £2.5bn this year, to raise an extra £800m for the public purse.

London's leading share index added 0.75% in late morning trading on Monday as miners were buoyed by strong results from Randgold Resources.

David Cameron has ruled out significant tax cuts while the government is cutting spending to reduce the deficit.

There is a "real chance" the Bank of England will raise interest rates as early as next week, says Skandia, with subsequent hikes pushing rates up to 3% by the end of next year.

London's leading share index edged higher in early morning trading, after disappointing results from Royal Dutch Shell yesterday dragged the FTSE down to close below 6,000.

Sterling rose to a fresh three-month high versus the dollar this morning after UK services data came in above expectations.

London's leading share index fell below 6,000 points in early morning trading, dragged down by a flat finish in US markets and continuing turmoil in Egypt.

Britain could suffer a jobless recovery like the one currently engulfing the US, an Institute for Fiscal Studies' (IFS) economist warns.