The economy looks set for a moderate recovery starting later this year as falling inflation eases the squeeze on household incomes, Bank of England deputy governor Charles Bean said on Tuesday.
While he welcomed the latest bailout deal for Greece, Bean said in a speech due for delivery at a business event in Glasgow that the euro zone debt crisis remains the single biggest risk to the UK economy, which may see slow growth until mid-year.
"Despite the recent more encouraging signs, we continue to expect underlying growth to remain sluggish in the first half of the year," Bean said.
The expected fall in inflation should help a modest pickup in household spending, he said, noting that the strong retail sales seen in January could be a first sign of this.
Moderate being used for no recovery? Or anaemic?
I'm sure he meant mid century....
Edited by interestrateripoff, 22 February 2012 - 09:06 AM.