IMF says backs ECB, Fed monetary policy decisions

WASHINGTON (BestGrowthStock) – The European Central Bank’s decision on Thursday to keep interest rates on hold at a record low was appropriate, while the Federal Reserve’s move a day earlier will help the U.S. economy, an IMF spokeswoman said.

“The ECB decision seems perfectly appropriate for monetary policy in Europe to remain accommodating for the time being,” IMF spokesman Caroline Atkinson told a regular news briefing after the ECB decided to would hold rates at 1.0 percent for the 18th month running.

Atkinson also welcomed the decision by the U.S. Federal Reserve on Wednesday to buy $600 billion in government bonds aimed at further lowering borrowing costs for consumers and businesses.

“We believe this action shows the Fed’s commitment to supporting the economy and the recovery, and particular to avoid the risk of long-term deflation,” Atkinson said, “We expect it will have a positive impact on the economy, although that may be modest.”

(Reporting by Lesley Wroughton, Editing by Chizu Nomiyama)

IMF says backs ECB, Fed monetary policy decisions