In a recent speech, Bank of England Governor Mervyn King covered some key points that would shape the economy of the country over the coming times. The speech included points regarding UK employment, public finances, recent economic data and UK households, among other sectors.

As far as the country’s employment goes, despite the fact that GDP rates might soon turn positive, unemployment is likely to remain at a high for some time to come. UK public finances, on the other hand, are said to be suffering from a structural deficit, which need to be eliminated in order to raise the national savings rate.

"Unless we demonstrate a strong commitment to fiscal sustainability in the longer-term, we will have neither financial stability nor healthy economic growth", said, Mr. King.

The Governor has warned that the rate of inflation also might pick up during the current year's first-half.

Talking about the public deficit, Mr. King said, "Of course, there is a perfectly sensible debate about the appropriate timing of the withdrawal of the temporary fiscal stimulus as the economy recovers".

Further, Mr. King shared that global imbalances, which currently persist with regards to finances, might soon be phased out, thanks to efforts being put in by Chancellor Darling.