The Bank of England is widely expected to cut interest rates this week amid fears that the UK economy is heading towards a recession.

Retail sales in Britiain fell for the sixth time in a row this month but improved on August, a Confederation of British Industry (CBI) survey said today.

The US stock market took another nosedive as the American banking system appeared even shakier and investors worried that the financial crisis is spinning so far out of control that even government rescues cannot stop it.

Average UK property lost 0.3% of its value during the year to the end of July, the first time it has recorded negative annual growth since the index began in 2003.

Bank of England rate-setters begin their latest two-day meeting today under increasing pressure to stave off a looming recession.

Bank of England governor Mervyn King today warned of a period of economic stagnation as the UK goes "through a difficult and painful adjustment".

The pace of the UK’s economic downturn will be revealed today with the publication of the latest official growth estimates.

There were fresh signs of financial woe today as figures revealed the UK economy grew more slowly than first thought in the opening three months of the year.

British department store chain John Lewis heightened nerves on the high street today by reporting a second successive fall in weekly sales.

The number of British people facing bankruptcy climbed in the first quarter of this year, official figures showed today.

Households in the UK caught in the fall-out from the global credit crunch were today told to expect a Bank of England rate cut later this week.

Inflation fears deterred British economic policymakers from a second rate cut in as many months today.

Surging oil and food costs pushed up factory gate prices in the UK at their fastest rate for more than 16 years in January, official figures showed today.

The Bank of England is widely expected to cut interest rates this week amid growing signs of a downturn in the UK economy.

The number of new mortgages approved for people buying a house dived to its lowest level for 12 and a half years during December, figures showed today.

New Year sales failed to spark a revival on the British high street after figures today showed trading grew at its slowest rate for more than a year.

Rogue trader Jerome Kerviel was today being blamed for aggravating the turmoil that saw tens of billions of pounds wiped off the UK stock exchange earlier this week.

Borrowing levels in the UK soared to record levels in December, official figures revealed today.

Fashion chain Next will fall under the spotlight tomorrow as the first major name to update on what is likely to have been the toughest Christmas in years on the high street.

There was more evidence today of a slowing British housing market after a major survey revealed prices fell for the second month in a row.

There was fresh evidence of a cooling housing market in the UK today after mortgage lending slowed further in November, the British Bankers Association (BBA) said.

More gloom was hanging over British manufacturers today after a weak survey prompted warnings of a recession in the sector.

Crisis-hit mortgage lender Northern Rock suffered again today despite a stock market bounce on hopes of lower interest rates.

Bank of England governor Mervyn King today signalled a hike in interest rates to 6% was off the cards and hinted policy-makers were ready to cut the cost of borrowing if the credit crisis deepened.

British borrowers could be spared another rate hike this year after the Bank of England today held interest rates at 5.75% amid growing unease over the impact of recent financial turmoil.

Cash-strapped Ford Motor Company took a step toward selling its Jaguar and Land Rover units today when it received an undisclosed number of opening bids for its British automaking businesses.

The pound charged to new 26-year highs against the dollar today as the US currency weakened amid further fears over America’s economy.

The chances of a July hike in British interest rates increased today after it emerged borrowers came within a whisker of a back-to-back rise earlier this month.

British households are braced for more mortgage pain as Bank of England policymakers began their latest two-day interest rates meeting today.

Sterling strengthened against the dollar today after an upbeat survey on British retail sales fuelled expectations of more interest rate hikes in the UK.

Sterling strengthened against the dollar today after an upbeat survey on retail sales fuelled expectations of more interest rate hikes.

The mood of British households brightened during April as consumer confidence lifted to its highest point in six months, figures revealed.

The UK's pound smashed another landmark today as the fallout from yesterday’s shock inflation figures pushed it to a 26-year high against the dollar.

The Bank of England’s decision to spare businesses a further rise in interest rates proved to be a crumb of comfort for manufacturers this week.

THE Bank of England is expected to hold interest rates at 5.25% next week after last month’s surprise rise, but borrowing costs could rise later in the year as policymakers try to control price pressures.

British households are braced for a further squeeze on finances this year as wage settlements look set to disappoint despite the rising cost of living.

Economic growth in the 12 nations using the euro currency slowed to 0.5% in the third quarter, the European Union announced today, dragged down by weak growth in France and Italy.

Better-than-expected inflation figures were overshadowed today when a separate measure used to determine pay rises and pensions hit an eight-year high.

A November hike in interest rates looked certain today after it emerged two Bank of England policymakers pressed for a rise to 5% earlier this month.

EUROZONE unemployment fell to five-year lows in June, data showed yesterday, heralding stronger domestic demand and strengthening the case for European Central Bank interest rate rises.

Jan Strupczewski, Reuters

WORLD finance chiefs meeting in Washington this week will express satisfaction with a rebounding global economy, but also highlight risks from surging oil prices, turmoil in Iraq and other factors.

THE Bank of England raised interest rates a quarter point for the second month running yesterday, abandoning its gradual approach to inflationary pressures.