Economics / Markets

Interest rates could rise substantially to 8% within two years to stave off soaring inflation, new research suggests.

The FTSE 100 opened at 5,211, rising close to 6 points or 0.11% in early trading following a flurry of M&A activity.

Greece is set to receive the second instalment of a rescue loan provided by the EU and IMF following the country's progress in cutting its deficit.

The FTSE 100 and other major global indices are in sharp decline today on the back of poor US unemployment data.

The banking sector's warnings that tighter regulation will throttle the recovery have been rejected by the body designing the new safeguards.

Britain's leading share index has fallen back into the red after enjoying modest gains in early Thursday trading.

Andrew Sentance voted against the rest of the Monetary Policy Committee (MPC) for a rise in interest rates for the third consecutive month, minutes from the August meeting show.

The Dow Jones has made steady gains on the back of positive US economic news, allaying fears of a slowing economy.

The FTSE has extended early gains after figures showed inflation eased in July, with financials and mining stocks leading the charge into positive territory.

UK inflation dropped marginally to 3.1% in July but remains well above the Government's 2% target.