April 20, 2018 / 1:49 PM / a month ago

ECB still needs to provide copious stimulus: IMF's Thomsen

WASHINGTON (Reuters) - The European Central Bank should continue to provide ample stimulus but some nations in the emerging part of Europe will have to normalize monetary policy quicker, Poul Thomsen, the head of the IMF’s European Department, said on Friday.

“With some exception, inflation is running well below target in most of Europe,” Thomsen said in a press conference. “In view of this, we support the continuation of very accommodative monetary policy, not least by the ECB.”

“In emerging Europe, the somewhat stronger but still-below-target inflationary pressures suggest a somewhat more advanced cyclical position,” said Thomsen, who was speaking during the International Monetary Fund and World Bank spring meetings.

“This means that monetary policy in some parts of emerging Europe might have to be normalized earlier or faster than in advanced Europe.”

Reporting by Balazs Koranyi and Jan Strupczewski; Editing by Paul Simao

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