IMF Backs ECB’s Easy Policy as It Sees Inflation Easing

IMF Backs ECB’s Easy Policy as It Sees Inflation Easing
The skyline with the banking district and the headquarters of the European Central Bank (ECB) are photographed in Frankfurt, Germany, on Oct. 4, 2021. Kai Pfaffenbach/Reuters
Reuters
Updated:

FRANKFURT—The European Central Bank has been right to maintain its easy money policy as inflation is set to fall after “transient boosts” from supply snags that may extend into next year, the International Monetary Fund said on Thursday.

Backing from her former employer was likely to bring some relief to ECB President Christine Lagarde as she struggles to persuade investors that she is not about to jack up interest rates in the face of record inflation.