Bank of England governor paints bleak picture

In news which may be of interest to both businesses and consumers, the governor of the Bank of England Mervyn King has confirmed that the UK is facing a difficult economic period.

During a speech, Mr King confirmed that the current economic challenge being faced by the country is its most difficult for 20 years.

Within the speech came a warning that net incomes would fall stagnant.

"It will not be an easy time and I know that some families will find it particularly difficult," said Mr King.

The chancellor, Alistair Darling, added: "The challenge for us is to ensure that the authorities can act quickly and decisively where necessary to support financial institutions."

Mr King's comments were made during a dinner at Mansion House.

Earlier this week, it was confirmed that the country is currently experiencing inflation levels of 3.3 per cent.