ECB rate cut would be helpful for euro area - IMF

A rate cut by the European Central Bank would "definitely be helpful" for the euro-zone economy, the managing director the International Monetary Fund (IMF), Mr Horst Koehler, said today.

The ECB has come under pressure recently to ease credit conditions in the euro area to boost flagging growth in the region.

The ECB is the only major central bank in the world not to have cut its key interest rates in response to the recent sharp deterioration in global economic conditions and has held its rates steady since October.

The IMF is expected to revise downwards its forecast for euro-area growth this year to 2.5 per cent, Mr Koehler added.

AFP