The International Monetary Fund has been in Britain to undertake its annual Article IV consultation and has published an interim report. Its views on the economic outlook are similar to those of the Bank of England and it supports much of the policy response by the authorities, including quantitative easing (QE). But it warns that vulnerabilities remain and that more surgery on the public finances, particularly on the spending side, will be needed. Not too many people would disagree with that. Its preliminary assessment is here.
Meanwhile Bank of England’s monetary policy committee contemplated an additional £75 billion of QE before settling on £50 billion. The minutes of its May meeting are here.
Originally published at David Smith’s EconomicsUK blog and reproduced here with the author’s permission.