Economics / Markets

An MPC member has predicted interest rates could hit 5% and urged IFAs to help homeowners prepare for the increases.

Blue chips have had a first stab at hitting the magic 6,000 level following gains in the US overnight and are regrouping after falling just one point short.

London's top share index ticked towards 6,000 late on Wednesday as tech giant ARM Holdings added 11% on rumours of a deal with Microsoft.

Sterling touched a three-month low against the dollar before rebounding as the Monetary Policy Committee (MPC) revealed continued division on interest rates while UK growth was revised down.

The British economy grew by 0.7% in Q3, lower than the previously estimated figure of 0.8%.

In 2011 the danger is the Euro system will put too much pressure on too many weaker countries and economies.

The FTSE 100 is expected to receive a powerful boost from strong US markets overnight which hit highs last seen before the collapse of Lehman Brothers two years ago.

The Bank of Japan has kept interest rates static at between 0% and 0.1% in a bid to boost the nation's economy and rein in inflation.

Vince Cable has said he has no intention of leaving government following private comments suggesting he could 'bring down' the coalition.

The UK economy will escape a "double dip" next year, but households face a tight squeeze on living standards, according to the Confederation of British Industry (CBI).