The Times says fears of a return to boom-and-bust in the property market intensified yesterd...
The Times says fears of a return to boom-and-bust in the property market intensified yesterday after the International Monetary Fund (IMF) said recent rises in house prices were a cause for concern and Halifax reported the largest annual increase in home values for 12 years.
The Telegraph writes that the IMF said yesterday the Government should consider introducing value added tax (VAT) on food and children's clothing to fund improvements in public services.
In its annual report on the UK economy, the IMF added that the Government could face a deterioration in the public finances as growth this year was likely to fall short of official forecasts.
The FT notes the Bank of England's monetary policy committee voted on Thursday to keep interest rates unchanged, despite calls from trade unions and some business leaders for another cut in the cost of borrowing.
However, the decision had been widely expected by economists, given further signs of global recovery.
The FT also writes that companies in the UK have criticised the slow progress of talks aimed at extending an insurance scheme that covers losses in the event of a terrorist attack.
The Treasury has been urged to widen the scope of Pool Re, the government-backed mutual insurer, which insures commercial property against fire, explosion or disruption caused by terrorism.
The Times reports that yesterday, Alan Greenspan, Chairman of the Federal Reserve said America appears to have pulled out of recession.
Mr Greenspan said recent data suggested "an expansion is well under way" — sparking speculation that the Fed Chairman was preparing the markets for an increase in US interest rates later in the year.
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