Sir Mervyn King
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Mervyn King: Expect 'gradual recovery'

The Bank of England has cut its economic growth forecast for 2011 from 1.8% to about 1.4%.

Inflation could hit 5% by the end of the year. I

In his quarterly report, the governor of the Bank of England, Sir Mervyn King, said "headwinds are becoming stronger by the day".