<p><br /> The UK is being warned of slower growth and stickier than expected inflation.<br /> </p><p><br /> Bank of England governor Mervyn King has said the British economy will see a "choppy recovery" after the recession.<br /> </p><p><br /> The latest forecasts come as Chancellor George Osborne's emergency Budget kicks in.<br /> </p><p><br /> The Bank says growth will be slower next year that previously thought.<br /> </p><p><br /> The report also say inflation is likely to stay above 2 per cent until the end of 2011 due to January's VAT hike.<br /> </p><p><br /> Households are being warned they could be squeezed by tighter credit conditions as banks repair their balance sheets.<br /> </p><p><br /> The latest gloom comes after recent surveys showed a sharp slowdown in high street sales, falling house prices and consumer confidence at its lowest for more than a year.<br /> </p><p><br /> The Bank's monetary policy committee has already slashed interest rates to a record low of 0.5 per cent and pumped £200 billion into the money supply, but its latest inflation forecasts signal that further action could be on the way.<br /> </p>
