IMF fiscal chief says UK needs to bring debt under control, welcomes fiscal rules debate

WASHINGTON (Reuters) – International Monetary Fund Fiscal Affairs Director Vitor Gaspar said on Wednesday that he welcomed debate in Britain over fiscal rules and that it was important to bring the country’s debt under control in a way that preserves public investment.

Gaspar, speaking at a news conference, did not offer a view on potential changes to budget rules that could allow UK Finance Minister Rachel Reeves to increase borrowing.

“The fiscal monitor emphasizes the public investment should be protected in the framework of a set of rules and budgetary procedures that foster sound macroeconomic performance,” Gaspar said. “The fact that that debate is very much at the center of the debate in the United Kingdom right now is very much welcome.”