Briton says Reagan policy could lift world economy

President Reagan's economic policies could lead to world economic recovery, the British chancellor of the Exchequer, Sir Geoffrey Howe, told Commonwealth finance ministers.

Ministers from 43 countries of the Commonwealth are here for two days of talks ahead of the annual International Monetary Fund and World Bank meetings in Toronto starting next weekend. Sir Geoffrey said that if interest rates continue to fall, the world economy could grow 21/2 percent next year, as forecast by the IMF and the Organization for Economic Cooperation and Development. His remarks are seen here as an attempt to deflect objections to Reagan policies ahead of the Toronto parley.