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Losses can exceed deposits

UK economic recovery 'will take years'

Published: 22/11/2013 - 10:01

Complete economic recovery in the UK will take a "number of years", according to Bank of England (BoE) chief economist Spencer Dale.

Speaking to BBC News, the official noted that improvements are not expected to take hold in the immediate future, due to the impact of "a very deep recession".

The BoE official went on to note that interest rates will remain low for a "sustained period", although he also suggested that a housing market bubble is unlikely.

His comments come after minutes from the Monetary Policy Committee's October meeting were released on Wednesday (November 20th), which showed all nine members had voted to leave interest rates untouched at 0.5 per cent.

BoE's plans for future interest rate increases have been an object of great scrutiny since August, when governor Mark Carney said he would not consider pushing up the figure until unemployment fell to seven per cent.

Earlier this week, however, the central bank said this level is not to be considered an automatic trigger for the rate hike.

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