Govt ‘in denial’ over economy

Posted 2008-04-13

The government is in "denial" about the current state of the economy, according to finance portal Fool.co.uk.

David Kuo, head of personal finance for the website, has said that it is unlikely conditions in the financial markets will improve sooner rather than later, adding that the government "keeps on saying that things are ok when in reality, they arent".

His comments come shortly after the Bank of Englands decision on Thursday (April 10th) to cut interest rates by 0.25 percentage points to five per cent.

"The British government seems to be reading a different set of figures to the IMF (International Monetary Fund)," said Mr Kuo.

"The IMF is saying the economy will slow, whereas the chancellor is saying everything is containable, but ultimately, what does that mean? Look at your own finances and dont expect other people to help you because there is no help available."

The Bank of Englands target for CPI inflation in the medium term is two per cent.

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