Mervyn King’s economic ray of light may be too bright

May 15, 2013

In his valedictory Quarterly Inflation Report, Bank of England Governor Mervyn King shone a ray of light on the British economy, saying it should grow 0.5 percent in the current quarter.

But according to the latest Reuters poll of more than 30 economists, published on Tuesday, that might be too optimistic.

The consensus showed gross domestic product would only expand 0.2 percent, weaker than the 0.3 percent expansion seen in the first quarter when the country missed sinking into an unprecedented triple-dip recession.

“I don’t know where he sees the growth coming from,” said economist Stephen Lewis at Monument Securities, whose forecast is in-line with the consensus.

“Perhaps he is hoping for some strong rebound after the improvement in the weather — although today it doesn’t seem all that improved,” he added from a cold and wet London.

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