Bank of England

Fears of a financial crisis hitting the UK are at their highest level since the collapse of Lehman Brothers, Bank of England research has revealed.

Consumer Prices Index inflation could fall to 3% by the end of Q1 2012 as the impact of the VAT hike and high oil prices falls away.

The Bank of England has been forced to cut growth forecasts for the UK to 1% amid fears of a double-dip recession brought on by the eurozone crisis.

Business leaders will today make a fresh plea to George Osborne to scrap the 50p rate of income tax and increase personal allowances to protect the British economy from the worst of the eurozone crisis.

The Bank of England (BoE) has kept interest rates at the historic low of 0.5% for the 33rd straight month, and held fire on additional quantitative easing measures after pumping an extra £75bn into the facility last month.

MPs on the Treasury Select Committee have called on governors at the Bank of England to serve a maximum of eight years before stepping down.

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Bank of England governor Mervyn King said badly managed banks should be left to fold, as he demanded sweeping powers to force financial institutions to be more transparent.

The deputy governor of the Bank of England has revealed how the Monetary Policy Committee (MPC) nearly raised rates earlier this year, before the downturn hit markets.

Deputy governor for Monetary Policy at the Bank of England Charlie Bean has said lower inflation next year should both support the mortgage market and consumer spending.