Investors have bet the Bank of England will have to raise interest rates as many as three times before the end of the year, The Telegraph reports.
Swap rates - the key money market measure reflecting traders' expectations for borrowing costs - rose at the fastest rate since Black Wednesday 16 years ago after a "shocking" rise in factory gate inflation.
In scenes described by one observer as "carnage", traders embarked on a massive sell-off of UK government bonds, pricing in the likelihood that the Bank's Monetary Policy Committee will lift the official base rate to 5.75% by the end of the year.
HOUSE SALES SLUMPED to a 30-year low last month, raising fears that the downturn in the housing market could turn into a crash, according to The Times.
Chartered surveyors reported that an average of 17.4 transactions had been completed each month between March and May, down from 18.5 in the three months to April.
This is the lowest figure since records began in January 1978, according to the Royal Institution of Chartered Surveyors (RICS). Housing transactions are regarded as a key indicator of future trends in the housing market, because a dearth of buyers drags down prices.
PRESIDENT BUSH ISSUED a call for a rise in the value of the US dollar on currency markets yesterday in a signal of mounting official alarm in Washington about the effect of the slumping greenback on the world’s largest economy.
In an exclusive interview with The Times on the eve of the United States-European Union summit in Slovenia, Mr Bush expressed concern about the dollar’s continuing weakness and said that he favoured an appreciation in the US exchange rate.
“We want the dollar to strengthen,” he said on Air Force One as it crossed the Atlantic bound for the summit.IFAonline
Caring for children and elderly relatives
Similar to June 2007
Square Mile’s series of informal interviews
Fine reduced to £60,000
Two roles created