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Economy set for recovery - BoE

Economy set for recovery - BoE
The UK economy is set for a “slow but steady recovery”, the Bank of England has predicted.

At a press conference this morning, Sir Mervyn King said there was “cause for optimism” in Britain’s economic prospects, though he warned that inflation was likely to remain above its 2% target in the near future.

His comments come after the CBI downgraded its own growth forecasts for the UK in 2013 from 1.4% to 1%. However the same body projects that the UK will not slip into a triple-dip recession.

At Prime Minister's Question's today, David Cameron drew attention to the Bank's verdict but Ed Miliband said: "In 2015, people will be asking am I better off now than I was five years ago. What’s his answer?"

Mr Cameron told the Labour leader: "What we are doing is helping working people by taking 24 million people and giving them a tax cut this year, and living standards will certainly be higher for those people on the minimum wage working full time whose income tax bill will be halved by the end of this Parliament."

In a statement, Shadow Chancellor Ed Balls responded to the Bank of England’s quarterly inflation report and ONS figures on real earnings.

He said: "As the economy bumps along the bottom and prices continue to rise faster than wages millions of people on middle and low incomes face seeing their living standards fall further over the coming years."

Green Box: Economy set for recovery - BoEClick to open

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