Well now. Who would have expected that news? How many more times will we have to see more hype about the recovery only to be updated with a new dose of reality? On the upside, isn't it great that the bankers are doing so well? It's important that they keep on making money for respectable bonuses and avoid any and all responsibility for their global failure.
Britain's economy faces a slow and protracted recovery and "we will still find ourselves in a difficult position for a long time to come", the Bank of England's Governor warned yesterday.
Mervyn King said the world economy "remains in a deep recession and its financial system in a fragile condition". The UK economy showed signs of stabilising now, he added, but the upturn could be so muted that many people will not notice the difference.
Mr King said: "I don't think it's unrealistic to suppose that growth rates come back but that doesn't mean that, as far as most people and most companies are concerned, the recession will feel as if it is over."
According to the Bank's quarterly Inflation Report, the recovery will be constrained as banks rebuild their strength and remain reluctant to lend, and as households and the Government set about paying off their debts. As in his many previous recent statements, the Governor emphasised that the banking system had to be fixed. He said: "We have to recognise that the banking sector is still in a bad way and it will take several years for it to repair balance sheets and be weaned off public support and in a position to lend again normally."
