Recovery in sight: Bank governor

Feb 13 2013

Bank of England governor Sir Mervyn King insisted a "recovery is in sight" but warned the path ahead for the UK economy will not be smooth.

Presenting the Bank's quarterly inflation report, Sir Mervyn said there was cause for optimism despite the worse than expected contraction in GDP in the fourth quarter of 2012.

However, households were braced for more pain as the Bank said the inflation outlook had worsened since the last report in November and was expected to rise to 3% or more by the summer and remain above the 2% target for another two years.