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Wednesday, 15 February 2012

King: OBR More Pessimistic Than BOE About Potential Output

The U.K. Office for Budget Responsibility is more pessimistic than the Bank of England about the economy's growth prospects, BOE Governor Mervyn King said Wednesday.

King told reporters that potential output is hard to judge in the short term but said the central bank is confident the U.K. can get back to historical rates of economic growth.

"I don't think there's any reason to believe the long-run growth rate of the economy would be lower than it was before the crisis hit," King said.

In November the OBR, a independent body that provides economic forecasts for the government, cut its estimate of the economy's potential output.

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