IMF warns UK's mini-budget might cause disparity| MENAFN.COM

Wednesday, 07 December 2022 03:18 GMT

IMF warns UK's mini-budget might cause disparity


(MENAFN) The International Monetary Fund (IMF) cautioned the UK on the administration's recently declared mini-budget, stating the nature of present fiscal indications is going to "likely increase inequality."

In an unusually outspoken announcement on Tuesday, the IMF stated it was "closely monitoring" improvements after British Chancellor Kwasi Kwarteng on Friday revealed a mini-budget in parliament comprised of a debt-financed package of £45 billion (USD49 billion) in tax reductions-- the largest round in 50 years.

The IMF called on the chancellor to "reevaluate the tax measures" in his economic announcement, which Kwarteng informed lawmakers might be "one of the most significant interventions the British state has ever made" that would "turn the vicious cycle of stagnation into a virtuous cycle of growth."

The British pound record all-time low versus the US dollar following Kwarteng's speech, dropping as much as 4.7 percent to USD1.035.

The mini-budget contains numerous tax reductions and the removal of a tactical business tax rate hike to 25 percent.

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