The Bank of England dealt a blow to Alistair Darling’s hopes of economic revival yesterday, warning that the recession will be deeper, and the road to recovery longer and harder, than it predicted three months ago.
The Bank sharply cut its growth forecasts to show a much deeper slump this year than the Chancellor has pinned his hopes on, while Mervyn King, the Bank’s Governor, said that any recovery was likely to be “relatively slow and protracted”.
“Now the economy requires a period of healing. That will take time,” the Governor said. “The economy will eventually heal but the process may be slow.”