The Chancellor George Osborne said the Governor of the Bank of England is "right on the big picture" in his growth forecasts for 2012. He insisted the economy is "healing" but said it was a "slow and difficult process" that involves "deep rooted problems at home" as well as as from abroad.
The Governor of the Bank of England Sir Mervyn King says the economy has reached a point where it is virtually flatlining. He downgraded his growth forecast for this year to around zero. Britain's economy, in other words, is grinding to a halt.