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BOE's King Says UK Recovery Slow, Inflation Too High

Inflation in the U.

K. is too high and the nation's economic recovery too slow, Bank of England governor Mervyn King said Wednesday as he warned the euro-zone debt crisis is far from over.In a lecture broadcast on BBC radio just days after official figures showed the U.K. economy slid back into recession, King said the nation's recovery from the ravages of the financial crisis isn't proceeding as fast as the central bank had expected, despite three years of record-low interest rates and GBP325 billion of quantitative easing, or buying bonds with new money.The annual rate of inflation, which was 3.5% in March, remains well above the BOE's 2% target."Although inflation has fallen back in recent months, it is still too high," King said, according to a text of his address. "And despite efforts to stimulate the economy, the recovery is proving slower than we had hoped."But he added: "It will come."Official data published April 25 showed the U.K. economy shrank 0.2% in the first three months ...

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