Inflation

The Bank of England may set interest rates as low as 2% by the end of 2009 to prevent a dangerous deflationary cycle, according to Tim Drayson, economist at Legal & General Investment Management (LGIM).

Consumer inflation continued to stretch away from the Government's target in September after huge rises in gas and electricity bills.

A UK recession is already well underway and the Government needs to slash interest rates immediately to avoid "huge damage" to the economy, the British Chambers of Commerce (BCC) warns.

The UK is likely to suffer a recession over the next twelve months, but it will be mild in comparison to those of the past, according to Andrew Sentence, a member of the Monetary Policy Committee (MPC).

IFAs have a tough time persuading apathetic, wealthy retirees to take action against the worrying effects of IHT and inflation, according to HFM Columbus.

Bank of England governor Mervyn King will have to write to the Chancellor yet again after inflation moved further away from the Government's 2% target in August.

Fidelity Multi-Asset Strategic fund manager Trevor Greetham has slashed exposure to commodities on expectations of a revival for government bonds and cash.

Despite inflationary worries and the Georgia conflict, the Russian economy is still experiencing a boom, according to JP Morgan.

Members of the rate-setting Monetary Policy Committee (MPC) were split three ways for the second consecutive month before opting to leave the base rate unchanged at 5% in July, MPC minutes reveal.

Chasing inflationary wage increases in a bid to guard against market instability will see inflation reaching 1970s levels, a Bank of England (BoE) member says.