IMF calls for ECB rate cut, quantitative easing

From reuters.com

The European Central Bank should cut interest rates and either inject more liquidity into the banking system via its Long-Term Refinancing Operations (LTRO) or start public and private asset purchases, International Monetary Fund officials said. The ECB is due to hold a meeting on monetary policy on Thursday. Consumer inflation, which the bank wants to keep below, but close to 2 percent over the medium term, has been stuck in what the ECB called the danger zone of below 1 percent for five months. "You can have too much of a good thing, including low inflation," Reza Moghadam, the head of the IMF's European Department ... (full story)