The European debt crisis is a key risk to the UK's banking sector and banks should build up their cash reserves in response, the Bank of England has warned. In its latest financial stability report, the central bank welcomed recent measures taken by the EU to stem the crisis.
United Kingdom consumer price inflation unexpectedly jumped to a 17-month high in April, 3.7%, driven by big rises in tax on alcohol and tobacco as well as higher prices for women's clothing and food, data showed.
The Bank of England held interest rates at record lows as policy-makers weighed up the impact of a Eurozone bailout and a hung parliament. The Bank's Monetary Policy Committee voted to hold rates at 0.5% and left its £200 billion program to boost the money supply unchanged.
UK Primer Minister Gordon Brown’s government borrowed a record £163.4 billion in the 2009/2010 financial year, according to figures published Thursday. While it is the biggest budget deficit since the Second World War, the figure is lower than Chancellor Alistair Darling’s prediction in the budget of £166.5 billion for the year.