The City sees a one-in-five chance the Bank of England will raise interest rates today to combat rising inflation.
With inflation at almost twice the 2% target, the monetary policy committee (MPC) is coming under increasing pressure to take action, the Guardian reports.
City economists attach a 20% chance to a rate increase at the MPC's monthly meeting today, but believe a move is more likely later in the year.
While money markets have fully priced in a rate rise by May, only 21 out of 67 analysts polled by Reuters think rates will go up before the fourth quarter.
Lib Dem peer quits frontbench over banking deal
A Lib Dem peer has quit the frontbench after saying of Project Merlin 'if this is robust action on bonuses, my name's Bob Diamond'.
Vince Cable earlier said he was still determined to end "unjustified and outrageous" salaries in the sector and his Liberal Democrat ally Lord Oakeshott left his party's frontbench after damning the government's attempts to curb bonuses, the Guardian reports.
Oakeshott, who was not in the government but spoke for the junior coalition partner on Treasury matters in the Lords, stood down shortly after he criticised officials working on the government's deal with the bankers.
Less environment, more governance threatens to undermine firms' green credentials
Evidence your compliance
Quarter of single pensioners dependent on state