The IMF has told the Bank of England not to delay raising interest rates as it warned that demand was too strong in the economy and UK inflation would rise to about 5.5 per cent in the spring.
In its annual health check on the UK economy, the fund said that “monetary policy needs to withdraw the exceptional support provided during 2020-21”.
Two days ahead of the BoE’s Monetary Policy Committee meeting, it accused the interest rate setters of allowing inflationary tendencies to become ingrained in the UK economy by finding excuses to do nothing at its regular meetings.
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