FRANKFURT May 12 Christine Lagarde, managing
director of the International Monetary Fund, has repeated calls
for more stimulus from the European Central Bank to keep at bay
the risk of persistently low inflation in the euro zone.
Lagarde said in an interview with Germany's Handelsblatt
published on Monday that the euro zone crisis is not over yet as
credit flows are still hampered and the difference in funding
conditions for companies across euro zone members still vary.
"On top of that, continuously low inflation brings
additional risks," Lagarde was quoted as saying. "Monetary
policy in Europe should therefore provide further growth
Her comments come after ECB President Mario Draghi said last
week the central bank was ready to take action as soon as next
month to boost the euro zone economy if updated inflation
forecasts merited it.
But Draghi also said that calls from international
organisations and various politicians for the ECB to take action
threatened to make the bank to look less than
The ECB has faced growing pressure from international
organisations like the IMF, as well as the from the French
government. The Organisation for Economic Co-operation and
development has also called for more action.
(Reporting by Eva Taylor Editing by Jeremy Gaunt)