Sir Mervyn King, the governor of the Bank of England, has backed the government's public spending cuts as a "balanced" austerity budget that was only knocked off course by higher than expected inflation.Speaking on BBC Radio 4's Today programme after giving the show's annual lecture on Wednesday night, said George Osborne had struck the right balance between spending and cuts. Without a spike in food and oil prices over the last couple of years the UK was on course to achieve steady, slow growth in 2012, despite falling into recession in the last quarter, he said.
Oh sure. Just like he told us that inflation would be down to 2% by the end of last year. How can you trust someone called Mervyn?