IMF says ECB should be ready to cut rates

The International Monetary Fund published a report on Wednesday 3 August urging the European Central Bank to stand ready to cut interest rates.

In a sharp critique of the state of the eurozone economy, it cut its growth forecasts, saying that the 'low-flying recovery' had hit a rough patch.

Although the fund agreed its monetary policy stance was 'appropriate for now', it seemed to clash with bank staff over the need for a cut.

'While there was agreement on the baseline projection for inflation

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