BERLIN (MNI) – European Central Bank Governing Council member Yves
Mersch said Tuesday that the International Monetary Fund is misjudging
risks in Europe.
“It is too pessimistic on growth and too optimistic on inflation,”
Mersch said in a panel discussion at a conference organized by the
German Banking Association (BDB).
Mersch, who heads the Luxembourg central bank, defended the ECB’s
recent two massive LTROs, arguing that the large liquidity injections
can help preventing a credit crunch in the Eurozone.
Yet, the key for overcoming the sovereign debt crisis in the
Eurozone “is a consolidation of public finances,” the Governing Council
member stressed.
–Berlin bureau: +49-30-22 62 05 80; email: twidder@marketnews.com
[TOPICS: M$X$$$,MGX$$$,MT$$$$,M$$EC$,M$$CR$]
