King does not rule out UK recession - papers 15 May

Mervyn King gave notice of a further squeeze on living standards, forecasting that inflation would climb to 3.7% and remain high for two years. “The nice decade is behind us,” he said. Yet within hours of this stark assessment, Gordon Brown staked his survival on the economy. He said: “I ask, and indeed expect, to be judged by this test: our stewardship of the British economy and building a lasting prosperity by releasing untapped potential.” UNEMPLOYMENT ROSE IN April for the third month in a row, in a sign that the labour market might be starting to feel the effects of a slowing eco...