Bank of England chief warns of 'choppy recovery'

Bank of England governor Mervyn King warned of “a choppy recovery” for the UK economy today as he braced households for slower growth and stickier than expected inflation.

The Bank’s latest forecasts showed slower growth than previously thought next year as British Chancellor George Osborne’s emergency Budget kicks in, while inflation will stay above the Bank’s 2% target until the end of 2011 due to next January’s VAT hike.