Damian Reece believes economic problems will last until 2016 [Video]

Damian Reece: Mervyn King’s economic forecast means more stormy water ahead

As Mervyn King, Govenor of the Bank of England, forecasts more gloom for Britain’s economy, Damian Reece predicts the slowdown could continue until 2016.

1:15PM BST 08 Aug 2012

At a press conference this morning the Bank of England revised its growth forecast to around 0pc and called for “patience” as they sought to rebalance the UK economy.

Damian Reece, the Telegraph’s Head of Business said there appeared to be uncertainty within the Bank of England as to how long the economic flat-lining will last, adding “it could be well into 2016 till we see a return to growth”.

The Governor blamed ongoing economic “storm clouds” from Europe for affecting the UK’s prospects.

The Bank is hoping that the newly introduced £80 billion “funding for lending” scheme, which provides loans to small businesses, will have a positive effect on financial growth.

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