- IMF cuts its 2014 eurozone GDP forecast to 1.1% from 1.2% in April
- Inflation forecast cut to 0.7% from 0.9%
- Says IMF should ‘substantially’ expand balance sheet if inflation stays too low
- Negative shocks could bring deflation to eurozone
- Negative shocks should not trigger additional austerity
- Sees risk of stagnation amid stalled reforms
The main headline is a repeat but the IMF is continuing to press the ECB on QE.
