IMF urges UK to ‘stay the course’ on borrowing amid Starmer uncertainty
The IMF has urged the UK to maintain its current borrowing strategy amid concerns over potential changes in leadership within the Labour Party. The organization praised Chancellor Rachel Reeves for her balanced approach to deficit reduction and growth, while also upgrading the UK's growth forecast for 2026. As uncertainty looms over the Labour leadership, the IMF emphasized the importance of stability in policymaking to navigate the volatile economic environment.
- ▪The IMF has called for the UK to continue reducing government borrowing amidst leadership uncertainties in the Labour Party.
- ▪Chancellor Rachel Reeves received praise from the IMF for her approach to balancing deficit reduction with growth-friendly spending.
- ▪The IMF upgraded its growth forecast for the UK from 0.8% to 1% for 2026, reflecting strong economic performance in early 2026.
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UK bond markets have been concerned the fiscal path adopted by Kier Starmer and Rachel Reeves could change if Andy Burnham were to become leader. Photograph: Adam Vaughan/EPAView image in fullscreenUK bond markets have been concerned the fiscal path adopted by Kier Starmer and Rachel Reeves could change if Andy Burnham were to become leader. Photograph: Adam Vaughan/EPAEconomicsIMF urges UK to ‘stay the course’ on borrowing amid Starmer uncertaintyWashington-based fund praises Rachel Reeves for aiming to cut budget deficit as it upgrades growth forecasts Business live – latest updates Richard PartingtonMon 18 May 2026 07.08 EDTLast modified on Mon 18 May 2026 07.09 EDTSharePrefer the Guardian on GoogleThe International Monetary Fund has urged Britain to “stay the course” to cut government…
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