►Britain to slash welfare in austerity gamble
Sumeet Desai/Reuters/Oct 20
Britain will on Wednesday take an axe to its welfare state as part of an 80 billion-pound cut in public spending that could seal the fate of both the economy and the coalition government…Economists are split between those who say the drastic action is needed and those who argue it will tip Britain back into recession. Almost all agree, however, that growth will slow and the Bank of England will have to keep monetary policy super-loose for the foreseeable future.

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China’s central bank raised its benchmark interest rate by 25 basis points yesterday in a bid to slow inflation’s momentum. The country’s inflation rate in August was reported at 3.5%, higher than the government’s 3% target, and the September update is likely to report a rise. Meanwhile, the Chinese economy is reportedly growing at 9%-plus.

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