UK 'will have to abandon austerity' to save economy if eurozone crisis escalates, warns IMF

The UK authorities must act soon to strengthen the UK economy against a possible escalation of the eurozone crisis, the International Monetary Fund warned today.

In a report on the UK, the IMF warned a crisis for the euro and the euro nations would deliver a 'substantial contractionary shock' to the UK economy, and warned: 'Risks are large and tilted clearly to the downside.' But the IMF went further and prescribed either a further monetary boost from the Bank of England or even a fiscal boost from the British Government ...Mail Online