MSE News:Sterling and FTSE down on gloomy Bank of England report

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This is the discussion thread for the following MSE News Story:
"Bank of England governor Mervyn King warned of "a choppy recovery" for the UK economy today as he braced households for slower growth and stickier than expected inflation ..."
"Bank of England governor Mervyn King warned of "a choppy recovery" for the UK economy today as he braced households for slower growth and stickier than expected inflation ..."
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Presumably it's because it indirectly hit sterling? Bit of a weak link though.
Get out now, before it's too late?
...only inflation.
Wasn't there something about Germany having to take their bank bailouts onto the books this afternoon (dunno if we'll eventually get the same with Lloyds, RBS, and the dead bits of NR and B&B).