'Olympic effort' needed to get UK economy growing

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The Governor of the Bank of England had bad news to deliver. Photo: ITV News

Sir Mervyn King cited the efforts of our Olympians (he likes the odd metaphor) as a model for the hard work to get our economy going.

It has not been a very cheerful press conference with several extremely striking admissions of just how uncertain the economy looks - 'we're not in a position to forecast anything', the Bank admits, because of the eurozone.

So no medals, not even a bronze, for the economy then.

The headlines:

Growth forecasts for this year cut to close to zero.

Inflation is on track (the glimmer of hope)

The Olympics may provide a 'very small positive' to the economy.

People have to be 'patient' even though we are five years on from the credit crunch.

Funding for Lending, the giant scheme that is meant to lend the banks extra cash to lend, should cut lending costs but the Bank can't tell what impact it will have. And the cash could be used by banks to pump up their reserves or their profits.

The Governor more or less ruled out a further cut in interest rates.

But he left the door open to more Quantitative Easing.

Nothing in the last three months, in the Governor's view, has changed the situation in the Eurozone, despite actions and summits in Brussels and Frankfurt.

Not exactly a happy set of conclusions.