IMF told to butt out of Britain's affairs after slamming mini-Budget

IMF is told to butt out of Britain’s affairs after slamming Kwasi Kwarteng’s mini-Budget

• The International Monetary Fund was told to keep its nose out of British affairs 
• The IMF launched an extraordinary intervention regarding the mini-budget 
• It said ‘we do not recommend large untargeted fiscal packages at this juncture’
• The intervention was met with fury inside the Treasury, sources have said

The International Monetary Fund was told to keep its nose out of British affairs last night after it launched a withering attack on the Government’s tax-cutting mini-Budget.

In an extraordinary intervention, it said ‘we do not recommend large and untargeted fiscal packages at this juncture’.

It said it was ‘engaged with the authorities’, urging the Chancellor to perform a U-turn on his tax cuts in his next mini-Budget on November 23, especially changes ‘that benefit high-income earners’. 

The International Monetary Fund was told to keep its nose out of British affairs last night after it launched a withering attack on the Government’s tax-cutting mini-Budget

The intervention was met with fury inside the Treasury, after a day when markets had calmed and some government bonds had rallied.

One Tory MP said: ‘At the end of the day it’s up to the elected Government to set fiscal strategy. I’m confident ministers will deliver a growing economy.’

Meanwhile the Chancellor told City investors yesterday he was ‘confident’ the biggest tax cuts in 50 years, at £45billion, will succeed. 

Kwasi Kwarteng told pension fund yesterday and insurance bosses: ‘Our approach will work’

Kwasi Kwarteng told pension fund and insurance bosses: ‘Our approach will work.’ 

Sterling has rallied since it hit record lows on Monday morning, and yesterday it held its ground at around $1.08.

But investors were still betting on an increase of up to 1.5 percentage points in interest rates on, or before, the next meeting of the Bank of England’s Monetary Policy Committee in early November.

The FTSE 100 index of the UK’s biggest firms was subdued yesterday, closing by around 0.5 per cent down.

Source: Read Full Article