Washington: The International Monetary Fund expressed strong support Thursday for the European Central Bank`s surprise actions to counter stalling growth and a threat of deflation in the eurozone.
"We strongly welcome the measures taken by the ECB, which will help to counteract the dangers posed by an extended period of low inflation," said IMF Managing Director Christine Lagarde.
The IMF had been urging the ECB to take further action to help the economy of the 18-member eurozone, still mired in crisis despite the rescues of Greece, Portugal and Ireland.
Against a background of growing concern that the eurozone is on the verge of dangerous spiral of falling prices the ECB cut its central "refi" refinancing rate to 0.05 percent from 0.15 percent.
It also lowered the deposit rate to negative 0.20 percent from negative 0.10 percent and trimmed its marginal lending rate to 0.30 percent from 0.40 percent.
Few analysts had expected any further rate action this month, arguing that, with eurozone borrowing costs already at record lows, a cut would not prove particularly effective.
