UK recovery on track, says Dale

CUTS in government spending will not derail the British recovery, the Bank of England’s chief economist said last night.

Spencer Dale insisted that current monetary policy should ensure that the recovery continues, even though some households directly affected by the cuts would suffer.

Earlier in the week the Office for Budget Responsibility said that growth for this year would hit 1.8 per cent, higher than previous forecasts.

“The economy is likely to grow at rates around or a little above its historical average," Dale said.