IMF says no changes are needed to UK economic policy

The government has welcomed an International Monetary Fund (IMF) report which has said that no changes are needed to UK economic policy.

The IMF said weak economic growth and rising inflation had been "unexpected", but that they were "largely temporary".

However its annual report warned that there were still "significant risks" which may need a policy response.

It predicted the UK economy would grow 1.5% in 2011, down from its forecast of 1.7% in April and 2% in November 2010.

Stephanie Flanders reports.