FRANKFURT, (AFP) - 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.
"Contrary to the United States, monetary policy
in the eurozone should remain on hold until recovery has become
self-sustaining," the newspaper quoted the IMF’s World Economic
Outlook, scheduled to be published in mid-April, 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.
The ECB appears to believe that the excess
liquidity in the eurozone economy could push up prices.
"If the dollar continues to decline in value, monetary policy
will become more differentiated, with a trend to tighter rates
in the US, but an easier policy in countries with rising
currencies," the newspaper quoted the IMF report as saying.
