Bank of England

The government yesterday said the credit crunch which plagued markets in 2008 has returned.

Bank of England governor Mervyn King has accepted UK economic growth will be flat over the next six months and has given a stark warning about potential shocks from the eurozone.

The government should create an investment vehicle to buy up business loans from banks, says a leading thinktank.

The Bank of England's Monetary Policy Committee voted unanimously in favour of keeping bank rate at a record low of 0.5% and maintaining QE at current levels, while warning inflation is not likely to fall as fast as expected.

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.