Aug. 8 - Bank of England Governor Mervyn King speaks at a news conference as the bank slashed its growth forecast to zero, blaming euro zone ''storm clouds'' for the bleak economic outlook. Rough Cut (no reporter narration).
A year ago inflation -- rising. And heading towards 5%. It has now fallen to within touching distance 52%. Target. The big picture and today's report. Is of a further decline in inflation. As external influences faith in domestic cost pressures east. And -- gradual recovery in -- Nevertheless we on navigating rough waters. And storm clouds continue to roll in from the Euro area. Output has contracted in each of the cost three courses. But the underlying picture is probably not a week is that headline data suggest. The extra bank holiday in June is likely to reduce output in Q2. By around half -- percent. And in fact it should unwinding Q3. Unlike the olympians who have -- us over the cost for night our economy has not yet reached full fitness. But it is slowly healing. Many of the conditions necessary full recovery tolerant place. And AM PC will continue to do -- count to bring about that recovery. As I've said many times the recovery and re balancing of our economy will be along slow process. So it is to our Olympic team that we should look for inspiration. They have shown us the importance of total commitment. When trying to achieve the goal made some news that.