Bank of England policymakers are expected to shrug off inflation jitters and keep interest rates at an historic low today.

The City today priced in an interest rate rise in May with potentially two more hikes to come later in the year.

Bank of England policymakers have been urged to hold their nerve on interest rates this week, despite continued inflationary pressures in the UK economy.

The Bank of England is unlikely to follow the US in pumping further cash into the economy today, citing a recent run of positive data.

The UK economy slowed "considerably" in the past few months, with job prospects and investment slowing and a "dismal" performance by firms in the service sector, a report showed today.

British Chancellor Alistair Darling gained a pre-Budget boost today after a sharper than expected fall in inflation in February.

The British Government today warned that further rises in unemployment were expected before the summer as figures showed those claiming jobseeker’s allowance soared to the highest level since Labour came to power in 1997.

The UK's goods trade gap with the rest of the world widened to an 11-month high of £7.3 billion in December, official figures showed today.

Unions and employers in Britain reacted with "alarm" today after unemployment surged to a 14-year high, prompting fresh calls for the UK government help for the growing army of jobless.

The Bank of England is expected to frustrate households this week by leaving interest rates unchanged at 5% for another month.

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.

The FTSE 100 Index leapt 3.5% today as beleaguered investors seized on a dramatic move from US policymakers to ease credit market turmoil.

Rate-setters at the Bank of England were given plenty to ponder today after figures on house prices and manufacturing output in the UK confounded expectations.