IMF Urges ECB To Cut Rates To Avoid Triple Deleveraging

The International Monetary Fund (IMF) urged the European Central Bank (ECB) to take countervailing measures against triple deleverage by cutting interest rates, and introducing negative deposit rates. In its latest Article IV report on the Eurozone,  the IMF also warned that early tapering by the U.S. Federal Reserve would risk reigniting the Eurozone debt crisis. The IMF warned that  early tapering would push the weakest countries in the Eurozone into a ‘debt-deflation spiral’. Hence the fund suggests the European Central Bank must take countervailing action to prevent a ‘vicious circle setting in’, through various measures such as cutting rates, introducing a…