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UK economy set for grim news from the governor

The Bank of England is expected to downgrade its predictions Photo: Reuters/Olivia Harris

In a couple of hours time Sir Mervyn King, or "Mr Governor'" to you and me, will have some grim news for the economy.

He is expected to cut back even further the Bank of England's predictions for the economy for this year.

Just a few months ago he said it would probably grow by 0.7 percent. King is likely to say now that it probably won't grow at all.

With a much sharper double dip already than most had forecast, the downgrading of expectations in itself will not be a surprise. Although the tone of his words will suggest just how much trouble he thinks we're really in.

But we'll be watching for hints of what he might actually propose to do to help.

Pressure is growing on the Bank to do what would have been unthinkable in the past - to cut interest rates even further from their historic low of 0.5 percent, and to add another enormous slab of money to the £375 billion that has been created and pumped into the economy already.

P.S. Having been instrumental behind the scenes in Bob Diamond's departure, will King have words for Standard Chartered's management?

It is a very different case in lots of ways, but as King's exit from the Bank comes closer he is notably more outspoken.

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