Inflation

The Bank of England's Monetary Policy Committee (MPC) voted five to four to maintain quantitative easing (QE) at £325bn this month, overruling the governor and three colleagues who called for further expansion.

The UK's inflation rate posted another surprise drop in May, falling to 2.8%, as the lack of activity in the UK continues to bring prices down sharply.

The Office for National Statistics has proposed a new inflation measure to replace the Consumer Prices Index (CPI) which would include housing costs in the calculation.

Quantitative easing (QE) has been an "unmitigated disaster" for anyone about to retire or people who have just bought an annuity, a pensions expert has said.

The International Monetary Fund (IMF), headed by Christine Lagarde, has urged the UK to consider introducing more quantitative easing and cut interest rates.

Inflation in the UK dropped in April, beatings the consensus forecast.

Société Générale strategist Albert Edwards has warned investors who own Australian government debt they face the 'mother of all hard landings' if China's economy slows down as they expect.

The UK Consumer Prices Index (CPI) climbed in March as higher food and clothing prices pushed inflation up to 3.5%.

STRAT BONDS

CPI annual inflation fell to 3.4% in February, down from 3.6% in January, according to the Office for National Statistics.