George Osborne will tonight insist that the Government was sticking to its economic plans, telling business leaders "now is not the time to lose our nerve". The Bank of England today predicted a "modest and sustained" recovery.
The outgoing Bank of England Governor Sir Mervyn King has given his most upbeat signal yet that the UK will recover from the financial crisis.
During his last forecast as governor, Sir Mervyn predicted growth will be a "little stronger" than previously hoped, setting the UK on course for a "modest and sustained" recovery.
He said the economy should expand by 0.5% in the second quarter of this year, while inflation will not surge as much as feared.
But he warned it will be a "weak and uneven" recovery.
The outgoing Governor of the Bank of England today delivered some good news for "the first time since the financial crisis began" in 2007.
The Squeeze could be the title of a horror B-movie but it describes a nasty phenomenon affecting every purse or wallet in the country.