The International Monetary Fund (IMF) has doubled down on criticism of the mini-budget of the UK chancellor, days after warning that it would fuel rising prices. IMF has admitted that tax cuts announced by Kwasi Kwarteng would boost economic growth in the short-term. But, According to IMF said the cuts will complicate the fight against rising prices.
IMF expects high prices to last longer in the United Kingdom, with only Slovakia outside of the Eurozone, which is set to see high inflation. Inflation is expected to peak at around 11.3 percent before the end of the 2022 in the United Kingdom.
Although the economy of the United Kingdom is set to grow the fastest of the major economies included in the G7 group in 2022, it is projected to grind to a halt in the upcoming year, with it expanding by just 0.3 percent.
After Kwasi Kwarteng revealed plans for large tax cuts in the United Kingdom, the IMF criticised the plans, warning they were likely to increase the inequality, and adding pressures that were pushing up the prices.
IMF has understood the mini-budget of the UK government aimed to boost growth, but the IMF said that the tax cuts can speed up the face of price rises that the central bank of UK, is trying to bring down.