* UK economy in better shape now than a few months ago
* BoE "absolutely determined" to get inflation back down
LONDON, Nov 17 (Reuters) - Parts of Europe are experiencing difficulties but Britain's economy looks in better shape now than it was a few months ago, Bank of England Deputy Governor Paul Tucker said on Wednesday.
In an interview with BBC Radio Oxford, Tucker struck a cautiously upbeat tone and reiterated the central bank's commitment to bring "uncomfortably high" inflation back to target. "The world is still a hazardous place and there are obviously difficulties around Europe. But I think the UK is in a better position now than perhaps it was a few months ago," Tucker said.
Tucker said the government's action to cut the budget deficit had taken away some of the risks to the macro-economic outlook, and noted it had been widely welcomed by the business community.
"The action that has been taken to put the UK public finances on a better footing over the next few years provides some insulation for our economy," he said.
Tucker said his tour of companies in the Oxfordshire region had thrown up a mixed picture. Exporting companies were typically benefiting from a fall in sterling's exchange rate but those importing raw materials had been affected by the "steep rise" in commodity prices.
He said the vast majority of the businesses he saw were "mildly optimistic" about the future.
"It's not easy, but it's probably going about as well as people could have expected it to go given how big the fall was during the crisis," Tucker said.
He reiterated the central bank's determination to bring inflation -- which rose to 3.2 percent in October -- back to target while seeking to safeguard the recovery.
"The BoE is absolutely determined to return inflation from its currently uncomfortably-high level of around 3 percent back down to our target of 2 percent over the next few years and while we're doing that to support recovery in the economy as well," he said.
(Reporting by Peter Griffiths and Christina Fincher)