UK economy has exited recession - King

But King told a Treasury Select Committee a full recovery would take a long time and would have to overcome a number of pitfalls. His comments came as official data showed UK consumer inflation fell in August to an annual rate of 1.6% as supermarkets continue their price war to attract cash-strapped shoppers. Analysts expect inflation to keep falling into next year as the economy remains weak. King hinted the Bank's £175bn quantitative easing programme could be expanded to halt the threat of deflation and also reiterated proposals to cut the rate on deposits held by banks at the Ba...