IMF Recommends QE and Low Interest Rates for UK

The International Monetary Fund has made recommendations to the government of the United Kingdom regarding the current economic situation of the country. IMF says that the UK government should carry out another round of Quantitative Easing and lower interest rates further. IMF is looking at the UK economy and comments that the government’s deficit reduction scheme is important and highly essential. However, economic growth will only carry on and be pushed further if necessary action were taken. IMF also stressed that there may be increased risks for the UK now that there is an economic crisis in the eurozone. According to Christine Lagarde who is the managing director of the IMF, “Unfortunately the economic recovery in the UK has not yet taken hold and uncertainties abound. The stresses in the euro area affect the UK through many channels.