IMF Backs European Central Bank’s Interest Rate Cut

The International Monetary Fund (IMF) on Thursday said it supports the European Central Bank’s decision to cut interest rates.

“We fully support the interest rate reduction announced this morning which reflects the decrease in inflationary pressures and the intensified negative outlook for the euro zone,” IMF spokesman David Hawley told a news conference in Washington.

ECB officials lowered the benchmark interest rate by 25 basis points to 1.25 percent, confounding 51 of 55 economists in Bloomberg News survey.

Hawley declined to comment directly on reports the Greek government was on the brink of collapse but said the IMF loan program was tied to Greece.

“Our programs are with countries. If the authorities in any country continue to implement the program, then the fund is in a position to continue the program,” Hawley said.