Bank of England: Economic recovery to be slow and fragile

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Bank of England: Economic recovery to be slow and fragile

Wed 12th Aug 2009

In its inflation report today, the Bank of England advised that economic recovery in the UK is likely to be "fragile" and "slow".

According to the Bank's Monetary Policy Committee, the economic downturn is more serious than previously believed and the timeframe for recovery cannot yet be confirmed.

The organisation's data shows that it is "more likely than not" that the annual rate of growth on consumer prices would, in the short-term, fall below one per cent during the autumn months.

Governor of the Bank Mervyn King stated: "The pace of recovery over the next few years is highly uncertain. It is the levels that matter, not growth rates."

Last week, the Bank's Monetary Policy Committee made the decision to maintain the current base rate at 0.5 per cent and announced that the value of its asset purchases plan would be expanded from £50 billion to £175 billion.

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