Accommodative policies can continue in Europe due to weak inflation, IMF says

Headquarters of the IMF in Washington, DC

Weak inflation in most of Europe justifies the continuation of the loose monetary policies implemented in the wake of the financial crisis, says the International Monetary Fund.

In its regional economic outlook published on November 13, the IMF argues that, despite stronger growth, low inflation still requires central banks to further stimulate the economy. Against this backdrop of weak price pressures, the European Central Bank prolonged its asset purchase programme by nine months on October 2

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