*BoE's King: Output Is Set To Remain Below Potential Supply Throughout Forecast Period

*BoE's King: GDP Growth Likely To Be Tempered By Necessary Fiscal Consolidation, And Continuing Restricted Availability Of Credit

*BoE's King: Inflation Likely To Remain Above Target For The Rest Of This Year

*BoE's King: Inflation Is Somewhat More Likely To Be Below Target Than Above It For Much Of Forecast Period

Pound Extends Downtrend Amid BoE Quarterly Inflation Report