PM's spokesman: Economy is 'healing'

The Prime Minister's official spokesman has said that David Cameron's view on the Bank of England's quarterly report "is that that economy is healing".

Read: BoE: Inflation could remain above target for two years


Household squeeze 'to worsen'

The Bank of England governor made clear today that the squeeze on household budgets will only get worse. Sir Mervyn King said he expected inflation to rise to three percent or more by the Ssummer and stay above target for another two years.