IMF and Britain lock horns over austerity

Despite an upswing in the British Economy, the IMF is pushing the country’s central bank to be more flexible in its efforts to reduce deficit.

By Staff | May 10, 2013 | Last updated on May 10, 2013

1 min read

Despite an upswing in the British Economy, the IMF is pushing the country’s central bank to be more flexible in its efforts to reduce deficit.

However, Britain appears determined to press ahead with its current policy. Officials at Her Majesty’s Treasury “have made it clear they will give as good as they get” if criticized by the IMF staff currently in Britain on their annual mission, reports FT.com

Experts say that although Britain’s economic recovery is gaining momentum, the pace remains far short of ‘escape velocity,’ something which Mark Carney is expected to achieve when he takes over as governor of the Bank of England.

Speaking at a global investment conference in London, Prime Minister David Cameron assured that the U.K. would continue to keep taxes low, reform welfare and invest in education.

His comments are reflective of the nation’s renewed confidence stemming from recent trade and investment figures that show Britain’s “turning the corner on inward investment after a difficult time since the recession,” according to another FT.com report.