“George Osborne was yesterday told to stick to his plans to tackle Britain’s towering debts despite worries about the sickly economy.
The International Monetary Fund said that the recovery has ‘stalled’, inflation ‘remains elevated’, and unemployment ‘is still unacceptably high’ in a bleak report on the UK.
It said the Chancellor should cut taxes temporarily and the Bank of England print more money to stimulate growth if the weakness persists.
But it said the ‘most likely’ outcome was that the economy will ‘gradually recover’ and added: ‘For now, staying the course seems the right thing to do.’
In its annual health check on the country, the Washington-based Fund said: ‘The weakness in growth and rise in inflation raises the question whether it is time to adjust policies. The answer is no.’
It came as a boost to the Chancellor after official figures last week showed the economy grew by just 0.2 per cent in the second quarter of the year.”