Though inflation in the euro area has so far been running in line with the European Central Bank’s 2% ceiling, the fund’s executive board said that “inflationary pressures could be expected to build gradually and some further tightening might be required.” The ECB in July kept interest rates steady at 4%, but many analysts expect a quarter-point raise at the bank’s next meeting in September.
The International Monetary Fund board offered an overall positive view following a meeting on the state of the euro area’s economy, welcoming the “move from recovery to upswing” and predicting “above potential” growth in the region of around 2.5% of GDP for the year. (monstersandcritics.com)
