BoE

The outgoing Bank of England (BoE) deputy governor Charlie Bean has said it is "reasonable" to expect interest rates to return to 5% within a decade.

Bank of England Governor Mark Carney has said the 'new normal' for interest rates in the UK will be around 2.5%, a level he predicted they may reach by 2017.

The governor of the Bank of England has told the UK to prepare for a potential rise in interest rates this year.

The UK's headline inflation rate dropped to 1.7% in February, its lowest level since late 2009.

The Bank of England (BoE) has said it will not raise the base rate of interest before the unemployment rate falls to 7% and warned investors are still expecting rates to rise sooner than is likely.

Gilt yields jump after the latest Monetary Policy Committee (MPC) minutes revealed all members voted against more quantitative easing (QE).

UK CPI inflation rose from 2.4% to 2.7% in May, according to the Office for National Statistics, a larger than expected rise driven by transport and clothing costs.

UK CPI inflation has fallen to 2.4% in April, a larger-than-expected drop from the 2.8% figure recorded in March.

Taha Lokhandwala considers the gilts outlook.

The Bank of England's Monetary Policy Committee will tolerate missing the inflation target for the next two years in order to support the UK recovery, said Bank governor Mervyn King.