LONDON, Jan 23 - The British economy is picking up strongly and becoming more balanced, the Treasury said on Friday as it welcomed robust fourth quarter growth figures. Ed Balls, the Treasury's chief economic adviser, appeared to lend support to any rate rises the Bank of England's Monetary Policy Committee may make in the coming months to ensure the economy does not overheat. "We have backed the MPC in the decisions it has taken to lock in stability as the economy strengthens," Balls will say in a speech at York University later on Friday.
He said Friday's fourth quarter GDP figures, which showed a rise of 0.9 percent on the quarter, confirmed recovery was in place and that the economy was becoming more balanced. This meant the government would meet all its spending commitments while sticking to its own fiscal rules. "We will meet our fiscal rules in this economic cycle and in the next economic cycle," Balls will say.//