The Governor of the Bank of England's defended its record despite missing its inflation target for more than two years.

Mervyn King says the UK would have suffered a much deeper recession had the Bank raised interest rates in order to hit the 2 percent target.

He doesn't think the UK will slip back into recession but warns the economy will "zig-zag" in and out of growth this year - and that things will be tough for many for some time to come.