George says public spending will prop up growth

Speaking on Tuesday the Bank of England's governor, Sir Edward George said public spending will underpin UK economic growth once consumer demand starts to wane, but any "substantial and generalised" public sector pay rises will push up inflation. He gave evidence to Parliament's treasury select committee which has been noted in the past for its hostile attitude towards monetary policy committee members.

"It's fortunate that the public sector is expanding... particularly with downside risks to

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