06/06/2011

'No Changes To Economic Policy', Says IMF

Confirming that no changes need to be implemented to UK economic policy, the International Monetary Fund (IMF) have explained that weak economic growth and rising inflation had been "unexpected", but described it as "largely temporary".

The fund said that temporary problems for inflation were a result of rising commodity prices and the increase in VAT.

However, the IMF annual report warned "there are significant risks to inflation, growth and unemployment".

Expanding the Bank of England's programme of asset purchases or having a temporary tax cut, where policies put forward for review.

Down from its forecast of 1.7% in April and 2% in November 2010, the IMF predicted that the UK economy would grow by 1.5% in 2011.

But it maintained its medium term forecast at 2.5%.

(BMcN/BMcC)

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