European central bank response wins plaudits

The reaction of European central banks to the credit crisis gained International Monetary Fund (IMF) approval on Monday.

In its latest Regional Economic Outlook for Europe, the IMF said: "In the euro area and several other advanced economies, monetary policy has been appropriately kept on hold in view of the downside risks associated with the financial turmoil."

The European Central Bank and the Bank of England have kept rates on hold since the crisis struck in August. However, the Riksbank a