A member of The Bank of England's rate-setting committee said last night the economy had emerged from recession in the quarter between July and September - contradicting initial figures published by the Office for National Statistics (ONS), reports The Times.
Andrew Sentance said a wide body of evidence "suggests the UK economy has moved on to a recovery track and growth has resumed in the second half of this year".
The ONS confounded economists last month when it said GDP had fallen by 0.4% in the third quarter.
Analysts had expected GDP to rise by about 0.2%, marking an end to the recession. The ONS will issue more detailed figures this month could lead to a revision of the headline GDP figure.
"I would not take a negative signal from the decline recorded in the third quarter - which may change, anyway, as a result of data revisions," Sentance said.
But he added public finances needed to be repaired.
Federal Reserve chairman Ben Bernanke's attempt to shore up support for the US currency failed yesterday as the dollar fell to fresh 15-month lows, reports The Telegraph.
In a rare moment of intervention into the currency markets from America's leading central banker, Bernanke admitted the Fed is watching the dollar "closely" as part of its focus on employment growth and price stability.
He stressed the dollar will remain "strong" and continue as a "source of global financial stability".
But his comments, part of a speech in New York, were not enough to stop the dollar's fall, easing 0.6% against a basket of major currencies, allowing sterling to rise by more than a cent to $1.6830.
The Fed chairman went on to reiterate the central bank's earlier commitment to keeping US interest rates exceptionally low "for an extended period". Read more
The Independent reports the City is up in arms over new powers for regulators to rip up bonus contracts.
The Bank of England's financial stability chief has thrown his weight behind the development of a market for "contingent capital" as an alternative to breaking up financial firms that are deemed too big to fail.
Paul Tucker, the Bank's deputy governor for financial stability, said the idea could provide a form of "catastrophe insurance" for banks.
Contingent capital, also known as "CoCo bonds" automatically convert into equity to absorb losses when a bank gets into trouble.
Regulators could require contingent capital to be part of a bank's pre- written recovery plan, which would be triggered in a crisis akin to the market panic of last year.
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