Reality and the UK Treasury

The Telegraph report that (my emphasis):

"The International Monetary Fund last night warned the Bank of England not to cut borrowing costs for the foreseeable future, adding that it might lose control of inflation if it did so.

It said the Bank must be ready to raise interest rates from their current five per cent if there are any signs that wages are starting to soar.

The IMF also gave warning that Alistair Darling may have to raise taxes in the next Budget, because of the state of public finances."

And the reaction of the UK Treasury:

"A Treasury spokesman said: "The UK economy is strong and resilient, with strong fundamentals such as low debt, and record levels of employment.""

Just as in the mid-1970s I think the IMF have a better grasp of the state of the UK economy than an appallingly inept Labour government.