IMF's Rato says don't rule out ECB rate cut

The head of the International Monetary Fund has said a rate cut in the Eurozone cannot be ruled out if the EU economy weakens.

IMF managing director Rodrigo Rato made the statement in an interview with the Spanish newspaper Expansion.

The interview took place before the No vote by French and Dutch voters on the EU Constitution.

The European Central Bank last Thursday rejected calls for a cut in interest rates.

Referring to the advice given by the IMF to the ECB, Mr Rato said: "What we've said is