You are here: Home - Uncategorized -

IMF ‘impressed’ with UK economy

Written by:

The International Monetary Fund (IMF) has rated the UK’s economy “impressive” and UK investment in it should continue to grow.

The report, which is mainly positive on the prospects for the UK economy, predicts “continued strong growth” and an inflation rate well within Chancellor Gordon Brown’s target, giving UK investment a good chance to thrive in the year ahead.

The report said: “Depending on evolving prospects for wage growth, some further tightening of monetary policy might be needed. If wages are overly high, this could lead to inflationary pressure, and this needs to remain on target to safeguard UK saving and investment.”

The report also looks at the Golden Rule – Gordon Brown’s dictum that states no more should be borrowed than spent in any economic cycle – and broadly supports it.

“Continuing commitment to the framework during the prospective period of strong growth will help ensure that good times are indeed used to reduce the underlying fiscal deficit.”

The IMF is certainly aware of the economic pressures that the Chancellor will have to ease if he is to keep a tight rein on spending and set realistic targets for the years ahead. In particular, “taming energy price-related inflation remains a stern challenge for the UK investment arena.”




Tag Box




Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co... Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

Read previous post:
House prices could ‘soar 15%’ next year

House prices may well be 15% higher at the end of 2007 than they are now, according to an economic...