The International Monetary Fund (IMF) has “declared peace with Britain in its long-running dispute over austerity” by accepting that the chancellor’s deficit-reduction programme was “appropriate” and praising George Osborne’s plan for being “well-balanced”, says Philip Aldrick in The Times.
A year ago, the IMF urged the chancellor to raise spending to boost growth and warned that he was “playing with fire” on economic policy; advice he “duly took exception to” and ignored, says Chris Giles in the Financial Times. The IMF has since upgraded its 2014 forecast three times over the past year, from 1.5% to 2.9%.
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