Confidence among investors that the Bank of England (BoE) will hold rates at record lows for as long as it has implied appears to be falling after a key economic indicator suggested the UK's economic recovery is gathering pace.
The UK unemployment rate fell 0.1% in the three months to July to 7.7%, according to the Office for National Statistics.
The Bank of England (BoE) has elected to hold the base rate at 0.5% and maintain the size of its quantitative easing (QE) programme at £375bn.
Positive data pointing to the increasing pace of the UK economy is putting the Bank of England (BoE) under greater pressure to rein in market expectations of an interest rate rise.
The new Bank of England governor, Mark Carney, has said he will step in to prevent a house price bubble caused by low interest rates and the Government's Help to Buy scheme.
Sterling dropped and then recovered sharply minutes after new Bank of England Governor Mark Carney told the world he has no plans to raise rates any time soon, but was upbeat on UK growth.
Mark Carney has moved to defend the Bank of England's 'forward guidance' policies and said further stimulus may be necessary keep the UK economic recovery on course.
While gilts have provided a safe haven for investors in tough times, funds in the sector will not offer that same protection as global monetary policies shift. Paul Burgin reports.
We look at ways investors can take advantage of the rising tide in the housing market.