UK economy has exited recession - King

The beleaguered UK economy is showing signs of growth after four quarters of contraction, Bank of England governor Mervyn King says.

However, King warned a full recovery would take a long time and says the economy will still have to overcome a number of "pitfalls". His comments came as official data showed UK consumer inflation fell in August to an annual rate of 1.6% as supermarkets continue their price war to attract cash-strapped shoppers. Analysts expect inflation to keep falling into next year as the economy remains weak. Speaking in front of the Treasury Select Committee, King hinted the Bank's £175bn quantitative easing programme could be expanded to halt the threat of deflation and also reiterated prop...