ECB should cut rate if downside risks persist: IMF

FRANKFURT (MarketWatch)
The International Monetary Fund on Wednesday reiterated a call for the European Central Bank to cut rates if downside risks to economic growth and inflation continue.
In its biannual regional economic outlook, the IMF said recent financial turmoil and a downgraded economic outlook pointed toward lower inflationary pressures and the possibility growth could fall below its potential, "calling on the ECB to maintain a very accommodative stance."
In addition, "it should lower its policy rate if downside risks to growth and inflation persist," the IMF said.
The report called on European policy makers to take urgent action to contain the euro-zone debt crisis, including rapid implementation of the July 21 summit decisions and a strengthening of the stability and growth pact that limits deficit and debt levels for euro-zone members.