UK bank governor sees signs of recovery

There are signs that the UK economy has returned to growth in the current quarter, the governor of the Bank of England told MPs today.

In a Treasury Select Committee hearing, Mervyn King said there were indications of a pick-up in activity, both in the UK and overseas.

But Mr King said the effects of the financial crisis sparked by the collapse of US investment banking giant Lehman Brothers – a year ago today – will be “pervasive and long-lasting”.

He added that there remained doubts over the sustainability of the global economic recovery.