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IMF urges UK to increase efforts to spur growth

FXstreet.com (Barcelona) - The International Monetary Fund released a report on the UK economy on Wednesday in which it suggests that the country should introduce new measures to boost growth and speed up the slow recovery.

The Eurozone crisis was cited as the main threat: „Despite recent market calm, growth in the euro area is likely to be weak, and the re-emergence of market tensions cannot be ruled out, with the potential for continued spillovers to the UK from depressed exports, higher bank losses and funding costs.”

Therefore, the IMF recommends that the UK government takes several steps to boost growth, namely carry out planned capital investment, taking advantage of the low borrowing costs, change the composition of consolidation and introduce measures aimed at stimulating activity in the housing market.

IMF First Deputy Managing Director David Lipton, who gave a press conference in London following the release of the report, also urged the UK government to increase its efforts to boost growth and suggested that the BoE should maintain interest rates low for as long as necessary.

“On a range of areas, the government should be more supportive than it has been or it plans to be.... and this effort should start now...” he said.

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