Bank of England governor Sir Mervyn King has said that recovery is in sight for the UK economy, although the region faces significant margin of spare capacity. He added that this recovery will remain weak by historical standards.
Sir Mervyn confirmed that inflation is expected to remain stubbornly above target, only falling back to target in two years time.
The UK saw GDP growth in the first quarter of 0.3 per cent, matched in the Eurozone only by Slovakia. Germany and Belgium followed with GDP growth of 0.1 per cent.
This will be the last time that Sir Mervyn delivers the Bank of England's inflation report. He closed with the following before taking questions:
I've had my say, it's up to the next generation to have theirs.