BoE predicts 'modest and sustained' UK recovery

The Bank of England has raised hopes over the economy by predicting a "modest and sustained" recovery.

But outgoing Governor Sir Mervyn King warned that inflation will remain stubbornly high until at least the end of 2015.

The latest Bank of England inflation report has been revealed.

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Osborne: 'Our plan is working'

George Osborne will tonight insist that the Government was sticking to its economic plans, telling business leaders "now is not the time to lose our nerve". The Bank of England today predicted a "modest and sustained" recovery.