King: Don't get carried away by GDP rise

Bank of England (BoE) Governor Mervyn King has issued a stark warning to MPs "not to read too much" into recent strong GDP figures.

King told the Treasury Select Committee today the debate on the British economy is still about the need for stimulus, despite second quarter growth estimates of 1.1%. Economic headwinds mean the country has a "considerable distance to travel" before the BoE base rate could rise to more "normal levels", he said. "We must be careful not to read too much into one number", he told MPs. To stimulate the economy the Monetary Policy Committee (MPC) must keep its foot "firmly on the accelerator", he said. The Committee, which includes King, has voted to keep the base rate at a low of...