Economic recovery on its way according to King
By Daniel Hunter
A return to economic growth is on its way according to Sir Mervyn King, the Bank of England governor.
The economy has been struggling of late, stuck in a double-dip recession, and although Sir Mervyn said he didn't have a crystal ball, he did say that the next quarter would probably show a pick-up in activity.
His comments came during a live interview on Channel 4 News, and although the recovery will be slow he said he has started to see a few early signs that it is beginning.
He said a lot depended on resolving the eurozone crisis, which was hanging over the UK like a "black cloud".
"I think the next quarter will probably be up. I think we're beginning to see a few signs now of a slow recovery, but it will be a slow recovery," Sir Mervyn said.
"After a banking crisis one can't expect to get back to normal and I fear it will take a long time."
There has been major discontent from the tax-payer recently after the crisis that saw leading banks needing their funded rescue. And Sir Mervyn said the taxpayer would have to step in again in any future crisis, but that it would be for a shorter period of time.
"I think temporarily the taxpayer would have to provide finance [if a big bank went bust] but we would be able to get control of the bank very quickly as we have a system that wasn't in place when Northern Rock went bust," Sir Mervyn told the programme.
He said more needed to be done to make sure the banking sector was returned to health: "We have to make our banking system safer. We can do it and we must."
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