Mervyn King believes UK only just started to recover

Governor Mervyn King from the Bank of England has said he has an open mind on whether to inject more money into the economy, as the UK has only just started along the road to recovery.

Mr King told a press conference where he outlined the new forecasts “We have a completely open mind as to whether to do more.” The Bank also expects inflation to rise above its 2pc target in the next few months before heading back down to 1.6pc within two years.

The higher growth and inflation forecasts come amid signs that Britain is being released from its deepest recession back in the1930s.The good news for home owners is that economists reckon that the Bank’s new forecasts don’t signal that interest rates will be raised from their record low level of 0.5pc anytime soon.

To read more on this story go to telegraph.co.uk.