This photo tasks of January 30, 2025 shows the headquarters of the ECB of the European Central Bank in Frankfurt, Germany.
Zhang Fan/Xinhua through Getty Images
The European Central Bank should only and act a percentage interest rate of a quarter more this year despite the broadest risks for economic growth, the Chief of Europe of the International Monetary Fund said Wednesday.
“We have a very clean recommendation for the ECB, what we saw so far is a great success in the deflation effort and monetary policy has worked … so we hope to achieve the inflation target of 2% in the second half of Detperan, Alfred Kammer, Alfred Kammer, Alfred Kammer CNBC’s Carolin Roth.
“Our recommendation is that there is room for a basic cut more than 25 basic points, in the summer, and then the ECB must maintain that 2% policy rate unless important clashes reach and there is a need to recalibrate monetary policy,” he added.
Kammer’s comments for an interview outside the FMI-World Bank spring meetings.
The ECB has reduced the rates seven times in the increments of point -fourth in the last cycle, as of June 2024. More recently it moved last week, carrying the deposit installation, its key rate, to 2.25%.
Inflation in the euro area cooled to 2.2% in March.
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Kammer told CNBC that the IMF had made a “significant reduction” in its growth prospects for many developed economies.
For the euro area, Kammer said that tariffs and commercial tensions weighed more in the prospects than recent developments on the fiscal side, including expectations of a greater expense in defense and infrastructure in Germany to increase growth in the block.