IMF backs Britain's economic policy

6th June 2011, Comments 0 comments

The International Monetary Fund said Monday it saw no reason for the British government to change its economic policy as it seeks to slash a massive deficit.

In its annual report on the British economy, the IMF said the "unexpected" weakness in economic growth and a rise in inflation over recent months "raises the question whether it is time to adjust macroeconomic policies.

It added: "The answer is no as the deviations are largely temporary.

"Strong fiscal consolidation is underway and remains essential to achieve a more sustainable budgetary position, thus reducing fiscal risks," it said in a statement.

Prime Minister David Cameron's year-old government has faced domestic calls to slow its programme of deep spending cuts because economic recovery has faltered since the economy pulled out of a record-length recession in late 2009.

© 2011 AFP

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