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Speech given by Mervyn King, Governor of the Bank of England
As we head into a challenging year for the world economy, we have seen more positive sentiment in financial markets, and, at home, a fall in inflation. But none of this implies that 2012 will be an easy year. We begin it with the level of output more than 10% below a continuation of its pre-crisis trend, and the unemployment rate at a 15-year high. These are huge changes in our economic fortunes. Tonight I want to talk to you about what is happening to our economy, what it means for the years ahead, and how the Bank of England is responding. A year ago, in a speech in Newcastle, I explained that inflation was ... (full story)
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