BoE's King says UK growth 'a little stronger'

Click here to read Mervyn King's Opening Statement to the Treasury Committee on the Bank of England's website

``So far the figures for the fourth quarter look a little stronger'' than the third, King told a parliamentary committee in London today. ``It is an exaggeration to regard this as any sign of a really serious slowdown.''

"The business surveys continue to come up with a more optimistic picture," he said, adding that early data on the fourth quarter suggested stronger growth than in the third.

"Even at 0.4 percent, that is actually fairly close to trend output, it is not much below trend output. So I think it is an exaggeration to regard this as any sign of a really serious slowdown."

"As you get to a period where it's less clear where interest rates should go -- maybe we're entering such a period now -- then I expect we would see again different views," King said, referring to the long period of unanimity on the Monetary Policy Committee.

``Current levels of debt are affordable, even with higher interest rates and even if house prices ease back,'' central bank Deputy Governor Rachel Lomax told the Treasury Select Committee, responsible for monitoring the central bank on behalf of parliament.