Bank governor Sir Mervyn King warns of hard times
Published: 28th Nov 2011 17:10:56
UK economic growth will be "flat or close to zero" over the next six months, Bank of England governor Sir Mervyn King has told MPs.
He told the Treasury Select Committee: "The outlook for output growth in the near term is considerably weaker than even three months ago."
Sir Mervyn's comments came on the day that the OECD warned that the eurozone and UK could be entering a recession.
Asked about the OECD report, Sir Mervyn said he had not yet read it.
As with the OECD's analysis, Sir Mervyn blamed the eurozone's debt crisis for contributing to the UK's economic problems.
He said there could be a particular impact on export growth.
"I think it is very hard to give a worst-case scenario from that (eurozone impact). Many things could happen and an awful lot will depend on the politics of it.
"What I would say more generally is that what we are facing is a situation in which some painful adjustments need to be made.
"And those painful adjustments will need to be made both for creditors and debtor countries, and those painful adjustments will need to be made irrespective of how the euro crisis plays out and so there is no easy way out of this," Sir Mervyn said.
Even if the eurozone crisis was resolved any time soon, it was Sir Mervyn's prediction that UK growth for the whole of next year would not be "rapid".
He did, however, repeat his belief, that factors that had led to the UK's sharp rise in inflation this year "are diminishing".
At 14:03:37 in SportHull have made an offer for Blackburn striker Jordan Rhodes, Rovers boss Gary Bowyer has told BBC Radio Lancashire.
At 14:02:51 in EnglandA married couple have been jailed after a crystal meth production lab was found in their Guernsey flat.
At 13:59:37 in SportLancashire one-day captain Paul Horton is hoping for a drama-free T20 Blast Finals Day after a traffic jam almost caused him to miss the quarter-finals.
At 13:56:50 in WalesAround 500 properties are without gas in the Nantyglo area of Blaenau Gwent after a water from a burst main leaked into gas pipes.
At 13:54:57 in ScotlandA man has been killed in a crash between a car and a lorry on the B7076 at Johnstonebridge near Lockerbie.
At 13:50:16 in SportBarcelona front-man Luis Suarez said he "feels like a footballer" after he made his Barcelona debut in a friendly against Leon on 18 August.
At 13:49:07 in EnglandPlans for a Gypsy and traveller site near Ilminster have been rejected by South Somerset District Council.
At 13:49:06 in ScotlandTwo men have been reported to the procurator fiscal over the alleged rape of a woman in the south side of Glasgow earlier this year.
At 13:41:27 in ScotlandAcclaimed author Iain Banks' novel Stonemouth is to be dramatised by BBC Scotland and Slate North for UK audiences.
At 13:36:37 in WalesAn ex-police officer who used confidential information to tip off his girlfriend about her brother being reported for drug offences has been jailed for 17 months.
Harvard CitationBBC News, 2011. Bank governor Sir Mervyn King warns of hard times [Online] (Updated 28th Nov 2011)
Available at: http://www.ukwirednews.com/news/206091/Bank-governor-Sir-Mervyn-King-warns-of-hard-times [Accessed 21st Aug 2014]
News In Other Categories
Hull have made an offer for Blackburn striker Jordan Rhodes, Rovers boss Gary Bowyer has told BBC Radio Lancashire.
Retail sales rose by 2.6% in July, up just 0.1% from June, figures from the Office for National Statistics (ONS) show.
The team behind a social network being used by Islamic State (IS) militants has admitted it cannot prevent the spread of extremist material.
Eurozone business growth slowed in August, weighed down by sluggish French and German economies.
A video of the violent death of James Foley, the American journalist who was killed by Islamic State militants, is difficult to avoid.
Acclaimed author Iain Banks' novel Stonemouth is to be dramatised by BBC Scotland and Slate North for UK audiences.