Monday, 27 September 2010

The UK economy is on the mend

That is the verdict of the International Monetary Fund in a positive report on the UK economy: Fund .

The report praises the Coalition Government's 'strong and credible' deficit reduction plan. While fiscal tightening could dampen short-term growth, it will not stop it, one in the eye for the double dip recession school of thought. CPI inflation should be back on target by 2012.

There are some araes of concern in relation to the banks and the report emphasises the need for the momentum of financial sector reform to continue. Backing for Vince, then. BTW, it was interesting to see my local Conservative MP Chris White writing an 'I'm with Vince' piece in the local paper.

Quite how 'Red Ed' will respond to this remains to be seen. It is his first test on the economic front.

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