VIDEO-‘Do I have to go on my knees?’: grovelling apology from IMF head for incorrect warnings on UK economy - Telegraph

A year ago Oliver Blanchard, the IMF’s chief economist, warned Mr Osborne was “playing with fire” with austerity and downgraded Britain’s growth forecast to just 0.7 per cent for 2013. Instead, it grew by 1.7 per cent, and is expected to hit 2.7 per cent this year.

“We got it wrong,” Ms Lagarde told the Andrew Marr Show. “We acknowledged it. Clearly the confidence building that has resulted from the economic policies adopted by the government has surprised many of us.”

“We said very clearly that we had underestimated growth for the U.K. and that our forecasts had been proven wrong by the reality of economic developments,” she said.

Pressed on whether she had apologised to Mr Osborne for the incorrect forecasts, she said: “Do I have to go on my knees?”

Mrs Lagarde rejected calls from the European Commission for higher taxes.

“The mixture between tax and spending cuts is something that we regard as fairly balanced and at the right mix. We don’t see a massive increase in tax as recommendable at the moment.”

The two chief risks to the economy are low productivity and rising house prices, but houses are not yet a bubble, she said.

Ms Lagarde dismissed speculation she could be the next president of the European Commission, saying: “The only position that has not been debated for me has been the Vatican.”

http://www.telegraph.co.uk/news/politics/10884632/Do-I-have-to-go-on-my-knees-grovelling-apology-from-IMF-head-for-incorrect-warnings-on-UK-economy.html