Lagarde urges the UK to consider further QE
The International Monetary Fund (IMF) has urged Britain to consider cutting interest rates below their already historically-low level and apply additional quantitative easing (QE) measures to stimulate growth.
The International Monetary Fund (IMF) has urged Britain to consider cutting interest rates below their already historically-low level and apply additional quantitative easing (QE) measures to stimulate growth.
IMF Managing Director Christine Lagarde and UK Chancellor of the Exchequer George Osborne gave a news conference in London today, which they discussed the economic situation in UK and the wider continent. She also suggested that it prepare a "Plan B" for deficit reduction in case the other measures failed.
Lagarde praised the efforts carried out to date but said that growth was too slow and unemployment is too high. "Policies to bolster demand before low growth becomes entrenched are needed, " she said. She also proposed a sales tax cut, among other measures.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Lagarde and Osborne also commented on Greece, with Osborne already speculating a possible exit from the Eurozone. "While we work for the best, we prepare for something worse," Osborne said this morning.
The IMF chief remains more hopeful: "I hope that whoever wins Greek elections will engage in constructive dialogue to implement plans. The IMF has to look at all alternatives on Greece. If a new Greek government has better ideas, we will listen. The same reforms will have to be made whoever wins Greek election," Lagarde said.
Lagarde also advised other European leaders that more structural reforms are needed to boost growth and protect the region.
SB
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.
-
Council tax bills in worst hit areas set to rise by £500 in the next four years
Branded the ‘ultimate stealth tax’, the council tax burden is increasing across the country, with some areas potentially having to find hundreds of pounds more a year to pay the bill
-
Crypto ETNs are approved for UK retail investors
The FCA has approved the sale of crypto ETNs to retail investors from October. What is a crypto ETN, and what does this mean for investors?