UK manufacturing growth slows; Kellogg to split in three; Elon Musk’s US recession warning – as it happened

Rolling coverage of the latest economic and financial news

• Latest: Kellogg to spin off North American cereals and plant-food divisions
• UK Manufacturing output growth slowing
• Elon Musk: US recession more likely than not in near term
• BoE chief economist: Further rate rises needed
• Grocery inflation jumped to 8.3% in June

The pound has gained against the US dollar, as traders anticipate that UK interest rates will keep rising.

Sterling is up 0.5% today at $1.2314, following Huw Pill's warning that further tightening is needed.

Interesting comments from Bank of England chief economist Huw Pill this morning on sterling, saying they should take into account the exchange rate, though he stressed it is not the target.

But given a lot of the inflation in Britain is imported dollar-based inflation - ie rising dollar prices on global markets - the Bank would do well to do more to defend the currency.

We will do what we need to do to get inflation back to target.

And at least in my view, that will require further tightening of monetary policy over the coming months.