The European Central Bank (ECB) should be in no hurry to lower interest rates, the International Monetary Fund has said in an analysis of euro zone economies obtained Friday, February 2, by AFP. "Indicators of inflationary trends are either above target or still moving that way — something that is problematic, especially for a central bank still engaged in reputation building," IMF analysts said in a concluding statement.
"In this setting, it is reasonable to await more information. For example, core inflation might stabilize or the US economy slow sharply, in which case the need for a monetary easing would become more clear-cut."
The statement is dated January 30, before the the ECB decision Thursday to maintain benchmark interest rates.—(AFP)
© Agence France Presse 2000
© 2001 Mena Report (www.menareport.com)
