Svenja O’Donnell London
Britain should stay focused on policies to foster economic growth and keep monetary policy loose, the International Monetary Fund (IMF) said in a report yesterday, as it acknowledged some improvement in the country’s economic and fiscal situation.
The fund’s Article 4 review on the UK praised the government for showing flexibility in its fiscal programme, although it said that planned tightening would continue to act as a drag on growth. It also said that “subdued” inflation pressures could allow the Bank of England to keep policy accommodative, and officials should consider providing guidance that rates would stay low.
“While adhering to the medium-term framework, the government has shown welcome flexibility in its fiscal program,” the IMF said in its report. – Bloomberg