The IMF said Britain's new massive tax cut plan could increase inequality and weaken monetary policy.

(AFP file photo)

[Financial Channel/Comprehensive Report] The International Monetary Fund (IMF) slammed Britain's latest tax cut plan on Tuesday (27th), warning that a large-scale and untargeted fiscal plan could increase inequality in the United Kingdom and weaken the currency. policy, calling on the British authorities to reassess.

According to comprehensive foreign media reports, the IMF called on the United Kingdom to consider providing more direct and effective support for households and businesses, rather than slashing taxes and increasing government spending.

An IMF spokesman said it was closely monitoring recent economic developments in the UK and engaging with authorities after heightened market concerns sent the pound to a record low.

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The IMF report pointed out that given the rising inflationary pressures in many countries, including the United Kingdom, the IMF does not recommend large-scale, non-targeted fiscal plans in this situation, because it is important that fiscal policy does not run counter to monetary policy.

Britain's new Chancellor of the Exchequer Kwasi Kwarteng announced on Friday (23rd) a budget aimed at developing the economy through tax cuts and a sharp increase in government borrowing, promising to launch a medium-term debt reduction plan in November to respond to the market turmoil.

The IMF said it was understandable that a series of large-scale fiscal plans in the United Kingdom aimed to help residents cope with rising energy prices and promote economic growth through tax cuts and supply measures, but such measures could put fiscal and monetary policies in conflict. and may exacerbate inequality.

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