King Backs Cameron Budget Plan as BOE Lowers Outlook: Economy

Bank of England Governor Mervyn King signaled continued support for Prime Minister David Cameron’s budget squeeze as he cut forecasts for economic growth and said Britain’s recovery will be a “slow process.”

“If you go back to 2010 when the rebalancing program was put in place, that looked pretty sensible,” King told reporters in London today. The plan’s three main elements “still seem to me exactly the right three things,” he said.