Rays of hope at long last for economy

BRITAIN bounced back from months of economic despair yesterday with a series of positive results that raised hope the worst may be over.

ALL SMILES President Obama and Gordan Brown ALL SMILES: President Obama and Gordan Brown

The housing market led the way with figures showing prices rose unexpectedly last month by 0.9 per cent – the first increase since ­Oct­ober 2007.

There was more good news when the Bank of England revealed that the billions pumped into the financial ­system are finally beginning to filter through in increased ­lending. It is the first time the banks have said they plan to ease credit restrictions since the collapse of Northern Rock in September 2007.

Amid the growing signs of recovery, the FTSE 100 Index rocketed past the 4,000 mark on the back of one of its biggest one-day gains for months.

And late yesterday world leaders announced $1trillion (£683billion) in aid for the International Monetary Fund in an attempt to boost world trade. But critics questioned whether the G20 summit deal would work.

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