Bank of England's Sir Mervyn King says recovery in sight


The UK economy has "cause for optimism", the governor of the Bank of England has said.

Sir Mervyn King, presenting the Bank's latest Quarterly Inflation Report, 20 years after it issued its first one, said "a recovery is in sight", but warned that the economy will be weak in the short-term and inflation will remain stubbornly high for the next two years.

Sir Mervyn also said the outlook for inflation had worsened since November.

Stephanie Flanders reports.

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.