IMF has advised the UK Govt to consider temporary
tax cuts in the light of low economic growth and high inflation.
The
latest GDP figures show that the economy grew just by 0.2% in the last quarter.
The recent increases in indirect taxes and high commodity prices are likely
to keep inflation high, and eurozone woes may further aggravate the matters.
On the other hand, inflation is expected to steady out over the next year
and a half, roughly reaching the Bank of England's target of 2% by the end
of next year.
While
progress has been made in securing fiscal consolidation targets, the UK
government needs to tackle the problems of prolonged weak growth,
high unemployment and subdued inflation.
|
