The Bank of England dropped a broad hint yesterday interest rates would be raised for a fifth time within a year over the coming months, reports The Guardian.
Its quarterly health check of the economy focused on risks that would push up inflation, making a further rise likely.
Mervyn King, the Bank's governor, also issued a warning to Britain's businesses that it was carefully monitoring their pricing policies. He said the bank would not hesitate to increase the cost of borrowing on signs firms were seeking to exploit robust demand.
The London Stock Exchange has attacked Britain's "unfair" tax system for giving private equity predators a huge advantage over public companies, according to The Independent.
Amid mounting controversy over the activities of private equity firms and the fall of a number of high street names, LSE chief executive Clara Furse said: "We [public companies] are double taxed on both dividends and stamp duty. They are using debt [to finance deals] on which they can write off the tax. There is an unintended policy distortion that the Treasury needs to think deeply about. It suppresses value and there is a massive tax distortion."
Furse was speaking as the exchange revealed it cost £11.4m to successfully see off the unwanted hostile takeover bid from the US Nasdaq exchange earlier this year.
Paul Wolfowitz was preparing last night to resign as World Bank president, says The Times. He was trying to negotiate a face-saving exit in which the institution would take partial blame for the row over his girlfriend’s pay rise.
The news came a day after the White House softened its support for Wolfowitz. According to bank officials, Mr Wolfowitz and senior officials were fine-tuning a formula by which the institution would admit “some responsibility” for bad advice over the $50,000-a-year, tax-free pay increase for Shaha Raza, a British citizen.IFAonline
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