Bank of England expresses fresh doubts over economic recovery

THE BANK of England will highlight fresh doubts over the UK's fightback from recession today with forecasts of slowing growth and a spike in the cost of living.

Governor Mervyn King has warned that a "sustained" recovery is uncertain despite the rapid 1.1 per cent advance seen by the economy between April and June.

A still-weak banking sector will prove another headwind to recovery, according to the Governor.

The growth concerns come as the Bank's Monetary Policy Committee wrestles with Consumer Prices Index inflation proving far stickier than previously forecast.