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  1. National

Rail fares to rise 1% as inflation shows little movement

Rail fares will rise by 1% in January 2016.

Average rail fares will increase by 1% from January, after the Retail Prices Index (RPI) stood at that amount in July, unchanged from the previous month.

It comes after the government froze fares in real terms for the next five years by matching them to the inflation measure.

Meanwhile, the Consumer Prices Index (CPI) measure rose to 0.1% in July from 0% in June, official figures also showed.

The Office for National Statistics, which released the figures, said it was the sixth month running that CPI, the headline measure of inflation, stood at or very close to zero.

It said the slight 0.1% increase was mainly due to clothing costs, with "smaller price reductions in this year's summer sales compared with a year ago".

"Food and motor fuel prices continue to fall and have helped stop a larger rise in the rate of inflation," head of CPI Richard Campbell said.


  1. National

Libor rate-rigging proved costly for a number of banks

Libor rate-rigging was a practice that proved costly for a number of banks when the extent of the scandal emerged in the wake of the 2007 and 2008 financial crisis.

Barclays was the first bank to be fined over the affair
was paid by UBS and the US Justice Department filed charges against British trader Tom Hayes
was the fine for Royal Bank of Scotland
was the fine levied on Lloyds Banking Group in July 2014 after it admitted rate-rigging

Much of the money paid in fines in the UK has been allocated to charities.

  1. National

Libor scandal prompted reform of financial markets

In the wake of the Libor rigging scandal, there has been a renewed focus on the practices of the financial markets.

A review in September 2012 found that manipulation of the way Libor was fixed had damaged trust in the financial system and called for urgent reforms.

Dozens of traders have been fired as a result of their alleged involvement in the Libor scandal. Credit: PA

The role of the British Bankers' Association in overseeing Libor was severely criticised and responsibility for it was handed to America's Intercontinental Exchange Benchmark Administration this year.

Rules published in 2013 laid out new requirements for checking banks' submissions and monitoring for suspicious activity by benchmark administrators, as well as the policy on handling conflicts of interest.

In June, Bank of England governor Mark Carney backed plans laid out by the Fair and Effective Markets Review for the lengthening of the maximum sentence for market abuse from seven to 10 years.

  1. National

Libor: What is the rate that was rigged?

A number of banks including Barclays, Lloyds Banking Group, the Royal Bank of Scotland and Deutsche Bank have been fined billions of pounds for their part in the Libor rigging scandal. But what exactly is the rate that was manipulated?

  • Libor - or The London Interbank Offered Rate - is a benchmark that indicates the interest rate that banks charge when lending to each other.
  • Each day, a panel of banks set out what rates they think they can borrow from others over a range of periods - from overnight up to 12 months.
  • The data is collated, the top and bottom estimates are removed and the rest are then averaged to give a final figure.
  • It is used as the basis for hundreds of trillions of dollars of loans and transactions around the world from complex derivatives to mortgages.
  • Libor is seen as fundamental to the operation of UK and world markets.
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