MPC

Capital Economics expects the Bank of England to cut the UK's base rate from 0.5% in an effort to stimulate growth, after last week's GDP figure showed the economy is shrinking faster than feared.

The Bank of England said it may reconsider the case for cutting interest rates once the impact of the new funding for lending scheme becomes clear.

CBI economist Ian McCafferty has become an external member of the Bank of England's Monetary Policy Committee (MPC).

Bank of England governor Mervyn King said he voted for more QE at the last meeting of the MPC because he is fearful over the outlook for Asia, emerging markets, and the US, as well as the ongoing eurozone crisis.

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 drop in inflation announced yesterday has paved the way for another round of quantitative easing by the Bank of England as early as next month, reports suggest.

GILTS

The Court of the Bank of England has commissioned reviews into the Bank of England's provision of liquidity to the banking system during the financial crisis and its forecasting abilities.

Bank of England policymaker Adam Posen will step down from the Monetary Policy Committee (MPC) on 31 August when his three-year term comes to an end.

The countries of southern Europe (and elsewhere) are beginning to behave like teenagers after their first all-night party.