Video: Bank of England Governor Sir Mervyn King upgrades economic forecast The Bank of England today raised hopes over the economy by predicting a "modest and sustained" recovery but warned that inflation will remain stubbornly high until at least the end of 2015. The Bank said growth should pick up to 0.5% in the second quarter of this year but it warned that the hangover from the financial crisis would ensure the recovery is weak and uneven. Presenting his last quarterly inflation report, outgoing Bank governor Sir Mervyn King said growth will be "a little stronger" than previously hoped - "the first time I have been able to say that since before the financial crisis"