Crunch time approaches for world economy ... There was a belated admission from Mervyn King (left) on Wednesday; ignore the Inflation Report, he seemed to be saying, because its forecasts may amount to no more than tomorrow's chip paper. The Bank of England, headed by King, has had its credibility tested close to destruction by its repeated failure to meet the inflation remit. OK, so of course he didn't use those exact words, but rarely has the Bank of England's Governor hedged his quarterly update with so many conditions and caveats. Given the record, which for the past three years has pretty consistently seen the Bank miss both its inflation and growth forecasts, you might think him wise to do so. In any case, "uncertainty" of outlook was the Governor's preferred message du jour. Looking at the range of challenges faced by both the domestic and world economy, few would fault his diagnosis. Markets took the slightly higher forecasts for both inflation and growth to mean there was now less chance of further quantitative easing, but that wasn't what Mr. King was trying to say. – UK Telegraph