Round up - August 20

Shares fall on fears of rising inflation and credit crisis fallout

The Times

Shares suffered a renewed battering on both sides of the Atlantic yesterday as investors took fright over the twin threats of hiking inflation and continued fallout from the credit crisis.

Equity markets, already rattled by the risk of recession across developed economies, succumbed to another severe sell-off as investors’ fears were inflamed by bad news on price pressures from the US and Germany and worries over fresh financial turmoil

The Financial Times

Persistent concerns about the financial sector and increasing fears over the world economy kept global equity markets under pressure yesterday.

Banks split three ways on rates

The Guardian

Bank of England policymakers were split three ways for the second consecutive month when they held interest rates at 5pc in August.

Minutes of the meeting published today highlighted yet again the dilemma facing the Bank as it juggles recession fears with the rising cost of living.