DAVOS, Switzerland (Reuters) - British Chancellor Philip Hammond said on Thursday he saw no case right now for using some of the room he reserved last year for the government to borrow more, ahead of his annual budget on March 8.
Britain's economy has exceeded the expectations of most forecasters following the shock of June's vote to leave the European Union, although economists polled by Reuters think a slowdown is likely this year.
In November, Hammond announced new budget rules to cut the budget deficit, once adjusted for swings in the economy, to below 2 percent of gross domestic product by the end of the decade - a goal which Britain's official budget forecasters said he was likely to be meet with room to spare.
"Nothing we see at the moment looks like a case for accessing that headroom, at the moment it's steady as she goes," Hammond told Reuters at the World Economic Forum in Davos, Switzerland.
He said the government was focused on improving productivity while making sure there is flexibility to respond if the economy needs help later in the year.
(Reporting by Elizabeth Piper Writing by Andy Bruce)