IMF issues a critique of UK fiscal policy

The IMF has issued unprecedented criticism of the UK government's policy of tax cuts, arguing that they run contrary to the aim of bringing inflation down and far from stoking growth are going to worsen income inequality in the economy.

To quote directly: "Given elevated inflation pressures in many countries, including the UK, we do not recommend large and untargeted fiscal packages at this juncture, as it is important that fiscal policy does not work at cross purposes to monetary policy."

Faisal Islam explains here why the IMF criticism is so unusual. Not only has it been unequivocal in its criticism but it's recommended that the government rethink its position.

Of course, now that the OBR is being allowed to produce its own figures - which some expect to see reverse some of these tax cuts pledges. Unless, cynics, suggest the OBR is currently being shown the figures that it's being expected to produce.