Interest rates in the UK could rise sooner than markets expect, a top Bank of England policymaker has said.
The EU financial sector does not need to be eased, there is plenty of liquidity in the banks.
George Osborne’s prospects of stoking the feelgood factor in the run-up to May’s general election received a double boost on Wednesday, with news that living standards are rising and an interest rate rise is likely to be delayed until late 2015 at the earliest.
Lord Grabiner, the barrister who has led an investigation into the foreign exchange rate rigging scandal, said the $5.3tn-a-day forex market needs to be regulated – but not too much, or the City could lose business to Frankfurt or New York.
The potential impact of the oil price slump on Scotland was underlined as a leading energy expert warned on Wednesday that North Sea oilfields could be shut down if the oil price fell by just a few more dollars.
Bank of England Governor Mark Carney said on Wednesday that the sharp fall in global oil prices was positive for British economic growth, repeating remarks made last month.
Mark Carney finds out this week if he will be the first governor since Bank of England independence in 1997 to write an open letter to the chancellor explaining why inflation is so low.
Further evidence of a slowing British economy came on Friday as official figures showed a surprise drop in construction in November and falling industrial output as oil and gas output declined sharply.