ECB Rejects IMF Call for Lower Rates Citing Broken Transmission

European Central Bank officials rebutted calls by the International Monetary for lower interest rates, citing a broken transmission channel and the absence of deflationary risks.

“I’m not saying it won’t happen but right now” interest rates “are appropriate,” ECB Vice President Vitor Constancio said in an interview in Tokyo today. “I don’t see risks of deflation. Our internal analysis doesn’t show that.”