IMF letter on prospects for ECB rate cut

In a letter published by the Financial Times on Tuesday 9 August, Michael Deppler of the IMF said international developments suggest that the worst may be over on growth in the eurozone but point to further upward pressure on headline inflation because of oil prices and the exchange rate.

"The wait-and-see/rate-is-appropriate stance seems to have been correct if you take the ECB's inflation objective seriously.

By the same token, given present underlying inflationary pressures, we see no scope