Curb wages to avoid tax hike, says IMF

THE International Monetary Fund (IMF) has urged the Government to curb public sector wage increases and limit expenditure to avoid having to increase taxes.

In its annual report on the economy, the IMF also underlined the need to reduce inflation and improve competitiveness.

The influential review also warned rising unemployment posed a risk to the housing market. It said there is a significant risk that house prices could be overvalued.