The Bank of England left its benchmark interest rate at 4.5% amid signs four increases since November are starting to cool consumer borrowing and the housing market.

AIB Bank and Bank of Ireland may become takeover targets for National Australia Bank when a former Barclays’ Bank deputy chief executive takes over NAB’s European operations in August.

LLOYDS TSB Group plc held its final dividend yesterday despite an 18% profit drop, but shares in Britain’s fourth-biggest bank lost ground as investors fretted about its future dividend policy.