Commentary: Sir Mervyn can retire on a high

These are the glimmers of hope that will help the Bank of England Governor retire on a high, but there was little sign of celebration this morning as he accompanied upbeat news with trademark caution.

With just six weeks to go, Sir Mervyn King allowed himself a smile during opening remarks at his last press conference following a decade with a hand on the economy’s tiller, saying: “I have had my say. Now it is over to the next generation to have theirs.”

If the picture is brightening, and growth is coming back, he knows the road to recovery is still a long one. Britain does look in better shape than France, gripped by a triple-dip recession, and even Germany, which is showing signs of struggling too.

But getting inflation under control is the task that will see King out. It remains a balancing act: if it falls too fast, it will hit nascent growth; too slow, and households and businesses remain unwilling to spend. Drawing people into work has been the big success of this government. Even though jobless numbers are up in the last quarter, they are still much smaller than a year ago. However, snail-like wage growth is tough for workers while the cost of living is streaking ahead.

King has shown frustration at the pace of progress — voting for an extension of the £375 billion money-printing programme and suggesting the economy would be better served if Royal Bank of Scotland was broken up.

Describing the Bank as a “consistent monetary referee” might be how he’d like to be remembered. Fast forward to July 1, and he won’t have to care anymore. Mark Carney will be safely ensconced in Threadneedle Street and King will no doubt be settling in for a full day’s play at Wimbledon.