ECB Spurns IMF With Early Exit Strategy |
|
November 29, 2009
If you are a slow mover, you start early. That will be the European Central Bank’s leitmotif as it presses ahead this week with plans to unwind exceptional measures taken to combat the economic crisis.
If you are a slow mover, you start early. That will be the European Central Bank’s leitmotif as it presses ahead this week with plans to unwind exceptional measures taken to combat the economic crisis.
The Frankfurt-based ECB will leave its main interest rate unchanged at 1 per cent. However, although anxious to avoid drama, expected policy tweaks will underline its determination to implement a timely “exit strategy” and return gradually to something akin to its pre-crisis way of controlling interest rates and providing liquidity.
In doing so it will put itself at odds with the International Monetary Fund, whose managing director, Dominique Strauss-Kahn, has urged policymakers to err “on the side of caution, as exiting too early is costlier than exiting too late”.
Related Links
