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| Version 0 | Version 1 |
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| 'Fragile recovery' for UK economy | 'Fragile recovery' for UK economy |
| (40 minutes later) | |
| The Bank of England has warned that the UK economy still has some way to go before it recovers from the effects of the financial crisis. | The Bank of England has warned that the UK economy still has some way to go before it recovers from the effects of the financial crisis. |
| In its latest quarterly Inflation Report, the Bank warns that any recovery in 2010 will be "fragile". | In its latest quarterly Inflation Report, the Bank warns that any recovery in 2010 will be "fragile". |
| The report will be bad news for the chancellor, who has predicted that the UK will rebound sharply in 2010. | The report will be bad news for the chancellor, who has predicted that the UK will rebound sharply in 2010. |
| If it does not, then his record budget deficit of £175bn will be even bigger, with a greater need for spending cuts. | If it does not, then his record budget deficit of £175bn will be even bigger, with a greater need for spending cuts. |
| On the outlook for inflation, the Bank said it was "more likely than not" that the annual rate of growth in consumer prices would temporarily fall below 1% in the autumn. | On the outlook for inflation, the Bank said it was "more likely than not" that the annual rate of growth in consumer prices would temporarily fall below 1% in the autumn. |
| 'Uncertain pace' | 'Uncertain pace' |
| The Bank has recently added another £50bn of new money to the economy as part of its programme of quantitative easing to spur economic growth. | The Bank has recently added another £50bn of new money to the economy as part of its programme of quantitative easing to spur economic growth. |
| Its report said there were "encouraging signs" that the steps taken to stimulate the economy had been having an impact. | |
| However, Bank governor Mervyn King was downbeat about whether the policy had been fully effective. | |
| He hinted that the Bank might have to consider additional measures, although he warned that with the public finances in such a perilous state, there was little room for further expansion to help boost economic growth. | He hinted that the Bank might have to consider additional measures, although he warned that with the public finances in such a perilous state, there was little room for further expansion to help boost economic growth. |
| "The pace of recovery over the next few years is highly uncertain," he added. | "The pace of recovery over the next few years is highly uncertain," he added. |
| Following his comments, economists suggested the bank would inject more new money into the economy. | |
| "More quantitative easing is on the cards," said Charles Davis from the Centre for Economics and Business Research. "Our rough and ready estimate is a further £50bn." | |
| "The reality of a deep recession and sluggish recovery has dawned upon [the Bank], recognising that insipid growth and downward pressure on prices is the greater concern." |