[mserve id=”Central_Bank_BOE.jpeg” align=”left” width=”400″ caption=”Bank of England” alt=”Central Bank of England BOE” title=”Bank of England”]
Mervyn King, the governor of the Bank of England, warned today that the weakness of the eurozone is jeopardising the UK’s recovery, and the emergency Ã‚Â£200bn quantitative easing programme might have to be re-started if the economy deteriorates in the coming months.
“My particular concern at the moment derives from the health of the global economy, and in particular our major trading partner, the eurozone,” the governor said.
Much of the 16-member eurozone bounced out of recession by last summer, but recently-released data for the final quarter of 2009 showed that Germany, the eurozone’s largest economy, stagnated, and several other countries, including Spain and Ireland, remain weak, while Greece is battling to avoid a default on its debts.
Charlie Bean, the Bank’s deputy governor, warned that he expects recovery in the eurozone, as in the UK, to be “sluggish”.
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