Mervyn King: Economy faces 'substantial headwinds'

In the Bank's February inflation report, Mervyn King warned the UK faces a host of "substantial headwinds" as ongoing problems in the eurozone and fiscal consolidation at home combine to put a brake on growth. "These remain challenging times for the UK economy," said King. "Substantial headwinds are hampering our recovery and rebalancing." Pointing to the need to also repair balance sheets, King said the country's recovery will be choppy, erratic and unpredictable. "For much of this year, there is likely to be a "zigzag" pattern of alternating positive and negative quarterly growth...