Economy has turned corner, says Bank guru

The Bank of England's chief economist today said recession-hit Britain "has turned a corner" and is now "on the road to recovery".

Spencer Dale said there are signs the economy has "begun to stabilise" and "we are likely to be moving into a period of renewed expansion" following 18 months of decline.

He also defended his decision to vote against raising the amount of money the Bank is pumping into the economy from £175 billion to £200 billion last month.

"I fully recognised the potential benefits of a more expansionary policy given the downside risks to the economy," he said. "However, I was also wary of the potential risks of such a policy." He said too much extra money could sent inflation higher.