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“Economic recovery in sight” – King

“Economic recovery in sight” – King

Category: Banking

Updated: 13/02/2013
First Published: 13/02/2013

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The Governor of the Bank of England, Sir Mervyn King, has claimed the UK's economy has "cause for optimism" and that a long awaited recovery is in sight, despite a prediction that inflation will worsen over the next two years.

Delivering the Bank of England's quarterly Inflation Report, Sir Mervyn stated that he expects inflation to climb to at least 3% by the middle of this year, remaining above the Government's target of 2%.

Higher utility bills and increases in university tuition fees were cited as two main factors in recent increases to inflation.

"The UK economy is set for a recovery," he said. "That isn't to say the road ahead will be smooth. This hasn't been a normal recession and it won't be a normal recovery."

The Office for National Statistics yesterday announced that the Consumer Prices Index remained at 2.70% during January for the third consecutive month.

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