Head of the IMF warning on UK growth
Christine Lagarde, the head of the IMF, has expressed renewed concern over the health of the UK economy.
The UK’s growth numbers are “not particularly good”, Ms Lagarde said.
But speaking ahead of a high-level meeting of policymakers in Washington, she refused to be drawn on whether UK should reassess its austerity policy.
Her comments came as Mark Carney, the next governor of the Bank of England, hinted at his concerns over the UK.
Furthermore, at the meeting between the IMF and the World Bank, he said the US recovery was leaving behind “crisis economies” that included the UK, the Eurozone, and Japan and that Central banks can provide the conditions for growth, but they can’t deliver long-term growth. That needs to come from true fiscal adjustment and fundamental structural reforms.
Although the Euro edged higher against the Dollar, the gains were limited by disappointing German data and amid speculation over a potential rate cut by the European Central Bank.
GBP/USD appreciated from 1.5211 to 1.5314 yesterday. Today GBP is trading skittishly and flirting with resistance at the upper end of yesterday’s range at 1.5360.
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