Mervyn King defends Bank's record on inflation

The Governor of the Bank of England has defended the Bank's record on inflation to an influential government select committee.

Mervyn King told the Treasury select Committee that quantitative easing and cutting interest rates to almost zero had generated the "beginnings of a recovery".

However, Mr King warned that output is still below what it should be and the British economy needs to go through a rebalancing act.

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