King admits UK in 'deep' recession

In his opening remarks to the inflation report, which the Bank published today, King warns that the length and depth of the recession will greatly depend on developments in the rest of the world. He also admits the actions by the Monetary Policy Committee have been undermined by circumstance. King says: "To cushion the downturn in spending, policymakers around the world have cut interest rates and loosened fiscal policy. At home, the MPC has cut Bank rate from 5% to just 1% in the space of five months. To some degree, the effect of those reductions has been blunted by the problems in the ...