Reply #15: George Osborne stands by economic policy [View All]

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http://www.independent.co.uk/news/uk/politics/george-osborne-stands-by-economic-policy-2351796.html

deficit reduction plans were flexible enough to deal with the deteriorating economic situation.

The chancellor defended his approach after IMF head Christine Lagarde said the UK government's stance remained "appropriate".

However, Ms Lagarde also delivered a stark warning that policymakers needed to be ready to change course if conditions worsened further.

"As (Ms Lagarde) says, the UK's strong fiscal consolidation is essential to restore debt sustainability given the UK's very large structural deficit and large financial sector relative to GDP," Mr Osborne said.