George Osborne risks damaging the UK economy further unless he eases austerity measures and faces the country's "growth challenge", the International Monetary Fund has said.
The Daily Telegraph reported IMF deputy managing director David Lipton said the Chancellor should give higher priority to saving the flagging economy.
Lipton told the Telegraph: “Our view has been that doing nothing is not a good answer given the problems that could arise when very, very low growth becomes entrenched.”
He also said the Bank of England should investigate how to be more inventive with quantitative easing to boost recovery by buying assets other than gilt-edged securities.
The report said the comments reflect a more critical IMF view about the government’s debt programme.
