IMF does not see strong euro as threat to economic recovery |
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Fri, 13 Apr 2007 11:37
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FRANKFURT (Thomson Financial) - The International Monetary Fund does not see the euro's current strength as a threat to economic recovery for the euro zone, Financial Times Deutschland said, citing Michael Deppler, head of the IMF's European department.'The euro is still fairly valued,' the newspaper cited Deppler as saying in its online edition.While the European Central Bank needs to adjust monetary policy to exchange rate fluctuations, Deppler said he considers the ECB's current policy to be on the right path, it said.An interest rate increase to 4 pct from the current 3.75 seems 'justified' considering euro zone growth is expected to be at levels near or above potential, and inflation at about 2 pct, Deppler told FT Deutschland.'After that a further tightening could become necessary if growth stays above trend and the risks for wages and prices increase,' the newspaper cited Deppler as saying.So far wage growth has been 'moderate,' Deppler said.maria.sheahan@thomson.commas/gpCOPYRIGHTCopyright AFX News Limited 2007. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited
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Euro group's Juncker says no negative impact from equities slide UPDATE 