IMF calls on ECB not to raise rates: Report
AFP, Frankfurt
The International Monetary Fund believes that the European Central Bank should not raise its key interest rates while economic growth in the 12-country eurozone remains so anaemic, the Financial Times Deutschland reported on Tuesday. At the same time, Dutch central bank chief Nout Wellink told the newspaper that the guardian of the euro would have to tighten monetary policy for the single currency area at some point. The IMF, in its World Economic Outlook scheduled to be published in mid-April, believes the time is not yet ripe for higher borrowing costs in the euro area, FT Deutschland said. "Contrary to the United States, monetary policy in the eurozone should remain on hold until the economic recovery has become self-sustaining," the newspaper quoted the IMF report as saying. The Fund sees no excessive inflationary dangers and therefore no reason for the guardian of the euro to tighten monetary policy, FT Deutschland said.
| 
