Presenting the Bank of England's Inflation Report for November, Mervyn King, the governor of the Bank, said that key indicators of stress in financial markets had recovered partly from the levels reached in August and September but that the situation was still far from normal.

Pointing to the spread between the three month interbank rates relative to future expected policy rates in the United Kingdom, United States and the euro area, which had all spiked in August, he said they had come back