Upbeat on the UK, downbeat on Europe

Unveiling the Bank of England's May 2003 Inflation Report on Thursday, Mervyn King was upbeat about prospects for UK economic growth and inflation. The Bank predicts that growth will pick up to trend and inflation will fall to remain close to its target of 2.5% in the medium term. CentralBankNet reports from the press conference.

However King, who will replace Eddie George as governor in July, also rekindled speculation over his euro-scepticism when he pointedly emphasised the importance of t