Pierre-Oliver Gourinchas tells ITV News' Joel Hills the UK is 'certainly not one of the ones at the bottom' in terms of inflation problems and economic growth.
The UK has been forecast to record the weakest economic growth across the G7 group next year, as Economics and Business Editor Joel Hills reportswill be the slowest growing economy in the G7 club of advanced nations next year.In an interview with ITV News, Pierre-Oliver Gourinchas explained that interest rates in UK will probably need to remain higher for longer than in the United States or the Eurozone in order to contain price rises.
"Central banks will want to be a little bit cautious, they don't want to start easing too early. Easing prematurely would be a great mistake.”The IMF assumes that interest rates in the UK, currently 5.25%, will peak at around 5.5% at the end of this year before they start to fall again in 2024. Last month, the Office for National Statistics published revisions which showed the UK economy had performed much better in 2020 and 2021 than had been thought.
“It’s in the middle of the pack among the the European economies, it’s certainly not one of the ones at the bottom,” he said.
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