The managing director of the
International Monetary Fund is expected to launch an appeal to
the European Central Bank on Thursday, urging it to deal with
deflationary risks by beginning a form of quantitative easing,
the Financial Times newspaper reported.
That would include large purchases of sovereign bonds to
stimulate growth, the newspaper said Wednesday, citing a draft
of a statement from the IMF based on its annual evaluation of
the eurozone's economic health.
The statement warns that deflation could push the eurozone
into stagnant growth of the type seen in Japan during its
so-called 'lost decade'.
The IMF report is to be presented by Managing Director
Christine Lagarde to eurozone finance ministers meeting in
Luxembourg on Thursday.
ECB President Mario Draghi said earlier this month that the
central bank is preparing to launch quantitative easing if that
is judged necessary.
Draghi also announced then that the bank was cutting two
key interest rates and offering up to 400 billion euros in loans
to banks that promise to pass the money on in the form of loans
to small- and medium-sized business.
ALL RIGHTS RESERVED © Copyright ANSA
