IMF tells UK to consider rate cut

  • The International Monetary Fund (IMF) has said the UK should consider cutting interest rates and quantitative easing in a bid to boost economic growth.

    Its annual look at the UK economy supported the government's deficit cutting plan.

    However, it said if growth continued to dwindle, the government would have to consider delaying cuts.

    UK interest rates are currently at a record low of 0.5 percent.

    While such measures can lead to higher inflation, the IMF's report comes on the same day of the latest UK inflation figures, which indicate a drop in the annual rate to 3 percent last month, the lowest rate since February 2010.