Call for Low Rates Is Lost on Euro Zone

Posted by The Popular News Today on Monday, May 16, 2011

Alex Domanski/Reuters The European Central Bank headquarters in Frankfurt.

The International Monetary Fund appeared to warn the European Central Bank on Monday against further interest rate increases, saying that the euro area is still in a fragile state. The warning may not have much effect, though. The European bank’s president, Jean-Claude Trichet, emphasized last week that the central bank will not be swayed by outside pressure.

In its World Economic Outlook published Monday, the I.M.F. suggested that there is no reason to raise the benchmark interest rate



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