King: UK recovery will be 'choppy'

A contraction in GDP figures yesterday proves the UK recovery will be "choppy", says the Bank of England's Mervyn King who urges households to face up to austerity.

In light of the 0.5% slow in UK growth revealed yesterday, the bank governor spoke out to defend the coalition's economic growth policy saying the cuts were needed to bring he deficit under control. The FT reports, at a conference in Newcastle last night, King says: "The right course has been set and it is important to maintain it." He adds the British economy is "well placed for a return to sustained, balanced growth" and sent a strong sign that changes to interest rates are not on the table, although he warns inflation could reach 5%. He says the central bank neither could, nor s...