Mervyn King gives Warning over the Economy

The video discusses the economic impact of severe weather, particularly snow, on recovery efforts in areas like New Castle. It highlights the rising inflation due to increased commodity and energy prices, predicting a temporary rise before a decline next year. Mervyn King argues against raising interest rates despite growth contraction. The video also addresses government spending cuts, unemployment, and the challenges businesses face. It concludes with a cautious outlook for 2011, questioning whether current economic shrinkage is a temporary blip or the start of a double dip recession.

What were the implications of the contraction in growth for interest rates?

What does the text suggest about the overall economic outlook for families and businesses in 2011?