02 August 2011

Here is the weather forecast

See those jokers at the IMF? The Independent reports:

In an assessment of the state of the UK economy, the IMF gave its backing to the Government's policy of "fiscal consolidation" to cut the deficit through tax hikes and spending cuts, backed by low interest rates set by the Bank of England.

[Translation: you seem to be dressed appropriately for the weather.]

Weaker-than-expected growth might require the Government to adopt "looser macroeconomic policies" such as tax cuts to stimulate demand, while the Bank launches a fresh round of quantitative easing - effectively printing money - said the IMF.

[But it might rain - so you better have an umbrella handy.]
However, the Bank must be ready to intervene to dampen demand by increasing interest rates from their record low of 0.5% if there are signs inflation is taking off, said the report.
[But, in case the sun comes out, you should take with you some sun-cream.]

What's the point?

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