Bank of England

Speculation the Bank of England will lower its economic growth forecasts has caused the pound to slump in afternoon trading.

The Bank of England has again held rates at 0.5% amid signs the economic recovery is failing to gather momentum.

A number of economists predict the Monetary Policy Committee will raise interest rates in August this year, to curb rising inflation.

The Monetary Policy Committee (MPC) was again divided six-three against a rate rise earlier this month, minutes from the April meeting reveal.

This week: Douglas Roberts, senior international economist at Standard Life Investments

The Japanese government has raised the severity of the crisis at the Fukushima Dai-Ichi nuclear plant to 7, a rating only previously applied following the 1986 Chernobyl disaster.

The Bank of England today held interest rates at 0.5% as fears over a sluggish economic recovery outweighed inflation concerns.

The Bank of England is likely to maintain its current monetary stance and keep interest rates at their historic low today after a new report suggested the UK's economic recovery remains sluggish.

Ministers are to outline plans for a universal state pension which they say will help people currently working prepare for a "different sort of world" in retirement.

Andrew Sentance has predicted inflation could rise above 5% this year and repeated his calls for a gradual increase in interest rates and cutting off of monetary stimulus.