June 18 The International Monetary Fund will
urge the European Central Bank to increase efforts to ward off
the risk of deflation with steps including programmes to
purchase government bonds, according to a person who has seen
The recommendation, contained in a two-page technical report
at the end of an IMF assessment of the euro zone, is in line
with similar calls from the fund in the past for the ECB to be
more aggressive in easing monetary policy to stimulate growth.
But it is the first time it has repeated the call since ECB
President Mario Draghi raised expectations of possible
U.S.-style quantitative easing by saying the Frankfurt-based
central bank could take further steps after it cut its deposit
rate to below zero in June.
"The draft from the euro zone mission restates more strongly
the request previously made to the ECB to do more to fight the
risks of deflation," said the source.
"It doesn't mention 'quantitative easing' but it does talk
about bond purchasing programmes," the source said.
(Editing by Robin Pomeroy)