The Eurozone economy is recovering and the ECB should therefore gradually raise interest rates to keep inflation expectations in check, the IMF said in a report.
Given the expected path of the recovery, the normalization of interest rates should proceed gradually, the IMF said in a review of the economy of the 17 countries using the Euro, released on Monday.
IMF Lipsky: Eurozone 2011 GDP forecast revised up to 2% versus previous forecast of 1.6%
IMF Lipsky: The IMF not negotiating new Greek program, focused on putting 1st one on track; almost inevitable mid-course corrections needed
IMF Lipsky: The IMF will require assurances from Eurogroup that Greek programme will be financed
IMF Lipsky: Real progress to bring debate on Greek aid to close
IMF Lipsky: Crisis effect worse if banks in core countries affected
IMF Lipsky: EU needs strong rules for single market to blossom
IMF Lipsky: Euro area needs more integration for growth
IMF Lipsky: Continued financial support key to solving crisis; imperative banks raise capital after stress tests
IMF: Europe has much to do to secure resilient monetary union
IMF: Failure to act decisively could cause Global spillover
IMF: Normalization of Euro area interest rates should proceed gradually
IMF: Euro area needs more cohesive response to crisis
IMF: Debt crisis threatens to overwhelm Euro area outlook; Euro area periphery faces challenges
IMF: Sound recovery continues in Euro area