King warns of 'choppy' UK recovery after GDP shock

In light of the 0.5% slow in UK growth revealed yesterday, the bank governor spoke out to defend the coalition government's economic growth policy saying the cuts were needed to bring the deficit under control, the FT reports. At a conference in Newcastle last night, King said: "The right course has been set and it is important to maintain it." He added the British economy is "well placed for a return to sustained, balanced growth" and sent a strong sign changes to interest rates are not on the table, although he warns inflation could reach 5%. He said the central bank neither coul...