CHANCELLOR George Osborne no doubt breathed a sigh of relief when the International Monetary Fund claimed that no changes are needed to UK economic policy.
Following a weekend in which the chancellor came under attack by several leading economists for sticking to his draconian deficit reduction policy amid such poor growth forecasts, yesterday’s IMF pronouncement was for him, a welcome intervention.
But there was also a sting in the tail.
Once again the IMF has downgraded its growth forecast for the UK economy, which now stands at 1.5 per cent down for 2011 down from 1 .7 per cent two months ago.
This is not good news.
And amid fears that rising inflation and increasing unemployment will increasingly pose a risk in the future, we do not believe Mr Osborne has been totally let off the hook.
The nervousness about the state of the UK economy will continue to dog Mr Osborne and the voices clamouring for a growth strategy as opposed to a policy concentrating solely on deficit reduction will only get louder.
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules hereComments are closed on this article