Bank of England governor Sir Mervyn King has said the road to economic recovery in the UK will be long, arduous and uneven.

"After decades in which the stock of debt built up rapidly, there is a reappraisal," he was quoted saying in the speech.

Sir Mervyn said falling inflation and subdued wage growth nevertheless gave the financial institution more scope to act.

"There is scope for interest rates to keep low, and, if needed, for additional asset purchases," he added.

Official figures released the other day demonstrated that the individual Prices Index (CPI) measure of inflation in England fell to 4.2% in December, down from 4.8% in November.

Speaking working in Brighton, Sir Mervyn explained that low development in Great Britain economy has not been only due to inflation but additionally down to households tightening their belts as a result of worries about jobs and future income.

"Households overall have been net savers, as opposed to net borrowers, for every of history 36 months," he stated.....Read More