IMF: Another forecasting fail?

It is not the first time the IMF, the international economic powerhouse, have cut the growth forecasts for the UK.

It is not the first time they have warned that the Government might have to change tack.

But despite the fact the combined cut in our growth for the next two years is bigger than for any other country, the IMF is not saying it is time now for the government to whip out Plan B.

What they are suggesting is that the Bank of England may have to ease up on monetary policy - could they really cut interest rates below 0.5%? - and for the Government to allow unemployment benefits to rise, the so called 'automatic stabilisers'.

But if growth remains elusive, and they predict the economy will shrink 0.4% this year and grow only 1.1% next, then the Chancellor should ease up on some of the planned cuts in the future.

Although again, that is the kind of message we have heard from the IMF before - think about having a Plan B ready, but don't press the button yet.