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.

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King could present positive growth and inflation reports

IHS Global Insight economist Howard Archer said commodity price falls have "diluted upside risks". That could mean inflation peaking at about 3% during the summer, he said.

Outgoing Governor Sir Mervyn King could actually have a rare parting present of being able to deliver a report that does not contain higher consumer price inflation forecasts or lower GDP (gross domestic product) growth projections.

Indeed, Sir Mervyn may even be able to present a marginal downward revision to the consumer price forecasts although having higher growth forecasts may be pushing his luck.

– Howard Archer

Governor could sign off with good economic news

Sir Mervyn King has been in the Bank of England's top job since 2003. Credit: PA

Outgoing Bank of England Governor Sir Mervyn King could deliver a rare dose of economic optimism by nudging up the UK's growth prospects in his final inflation report today.

Economists believe recent encouraging signs from the economy could see the Bank hold or even lift growth forecasts, while it is also expected to trim its quarterly inflation forecast on the back of recent falls in oil and commodity prices.

Britain eked out growth of 0.3% in the first quarter and a recent trio of positive surveys for April showed improved growth from the service sector, near-stabilisation in construction and improvements in manufacturing.

The quarterly inflation press conference is Sir Mervyn's last before he hands over to new governor Mark Carney in July.


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