Bank of England

Bank of England chief Mervyn King said the shock contraction in GDP figures proves the UK recovery will be "choppy" but he appeared to rule out immediate interest rate rises.

The economy suffered a marked slowdown in growth in the final three months of last year, official figures released tomorrow are expected to show.

Investors should shun fixed income assets for high-yielding equities in areas like emerging markets, in order to beat the inflation trap, according to Distinction Asset Management.

The BoE risks making the UK's debt problem bigger if it raises rates above 0.5% in the near-term to tackle "one-off" inflationary pressures, says the head of portfolio management at Prudential.

The Bank of England has maintained interest rates at 0.5% and kept its quantitative easing programme at £200bn.

Dr Ros Altmann has called on the government to reintroduce inflation-linked certificates as pensioners battle the rising cost of living.

First-time buyers need an average deposit of £29,000 to buy a property, a report by the Halifax concludes.

An MPC member has predicted interest rates could hit 5% and urged IFAs to help homeowners prepare for the increases.

China has offered support to the eurozone to help it through the debt crisis that has gripped the region.

In 2011 the danger is the Euro system will put too much pressure on too many weaker countries and economies.