King's 'deep sympathy' for savers

Poor savings rates, tough employment conditions and high living costs are part of the "painful adjustment" needed to rebalance the economy, Sir Mervyn King said.

The Bank of England Governor said he had "deep sympathy" with savers who are receiving "negligible" returns through no fault of their own. But he warned there was "no easy remedy" to get the economy back on track and raising interest rates would only make the situation worse.