Bank of England rate-setter admits to sleepless nights

Worries over a double-dip recession caused by savage belt-tightening across major economies have given Bank of England rate-setter Adam Posen sleepless nights, he admitted today.

A squeeze on ballooning deficits through austerity moves in the Eurozone - the UK's biggest trading partner - will "hurt", the Monetary Policy Committee (MPC) member said.