The International Monetary Fund yesterday called for an early rise in interest rates, pointing to a sharp fall in house prices as the principal danger facing the UK economy.
The IMF said the possibility of a hard landing for house prices and consumer demand could not be ruled out and said raising rates should come sooner rather than later.
The IMF forecast that the economy would grow by 3.1% this year, up from 2.3% in 2003.
References: Financial Times 06/03/04 page 3, Daily Telegraph 06/03/04 page 29, The Times Business 06/03/04 page 55, The Independent 06/03/04 page 56
