Bank of England governor Sir Mervyn King warned today of the “risk of a storm heading our way from the Continent” as he flagged the eurozone as the greatest threat to the UK's recovery. Sir Mervyn's warning came as the Bank said the UK economy will not return to pre-financial crisis levels before 2014 after it cut its growth forecasts for the next two years. The Bank now expects growth of around 0.8 per cent this year. And the squeeze on consumer spending is set to maintain its grip as the rate of inflation falls more slowly than previously expected, remaining above the Government's 2 per cent target for the next ... (full story)