IMF pushes ECB to consider further cuts to refinancing rate

06/9/2009 | Reuters

In a report on the eurozone, the International Monetary Fund said the European Central Bank should look into reducing its main refinancing interest rate. "The benefits of further cuts in the policy rate need to be judged against their possible adverse effects on the functioning of money markets, but it would be useful to explore any margin for further reductions as soon as possible," the IMF said. The report also criticizes stimulus efforts in the eurozone for lacking a "proactive strategy" to stabilizing the financial system.

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