MPC

Inflationary pressures are greater than the MPC painted in its latest report and higher interest rates are urgently needed, says the MPC's Andrew Sentance.

Schroders' Richard Buxton believes the Bank of England will hold off on raising interest rates this year despite his forecast inflation could reach 5%.

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

The MPC is highly unlikely to raise interest rates this week but will begin to hike in the second quarter as GDP improves, says OMAM's Ashton Bradbury.

Kate Barker, a former leading member of the Bank of England's MPC, has warned the UK economy could be only part way through the financial crisis.

LGIM's Richard Hodges has added 12% to his high yield positions in the £1.3bn Dynamic Bond trust, and expects to take exposure to 50% this year.

There is a "real chance" the Bank of England will raise interest rates as early as next week, says Skandia, with subsequent hikes pushing rates up to 3% by the end of next year.

Martin Weale has called for an immediate 0.25% increase in the Bank of England (BoE) base interest rate, echoing the view of Monetary Policy Committee (MPC) hawk Andrew Sentance.

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

Sterling touched a three-month low against the dollar before rebounding as the Monetary Policy Committee (MPC) revealed continued division on interest rates while UK growth was revised down.