United Kingdom (UK) interest rates should be cut to 3.5 percent by the end of next year, the International Monetary Fund (IMF) has recommended.
Such a move could see the Bank of England cut its key rate by up to seven times from its current level of 5.25 percent.
The IMF’s comments came as it upgraded its UK’s growth forecast for 2024, but it advised against any further tax cuts.
Chancellor Jeremy Hunt said the report “clearly shows that independent international economists agree that the UK economy has turned a corner”.
Mr. Hunt added that the IMF had “forecast we will grow faster than any other large European country over the next six years – so it is time to shake off some of the unjustified pessimism about our prospects”.
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Labour’s shadow chief secretary Darren Jones said the Conservatives had left the country in “economic chaos”.
“Millions of people are paying more on their mortgages, prices are still rising in the shops and the UK economy has been rocked by a mini-budget that left working families worse off,” he said.
Liberal Democrat Treasury spokesperson Sarah Olney said the government had “blown a black hole in the country’s finances, bringing public services to their knees”.
The IMF is an international organisation with 190 member countries, including the UK.
