The International Monetary Fund warned on late July 27 that the eurozone’s prospects were modest and that more money printing than planned may be needed. Contrasting the IMF’s relative gloom, however, German think tank Ifo reported improving confidence the 19-country bloc’s largest economy, Reuters reported. The IMF, saying medium-term growth would be subdued, urged the European Central Bank to keep its money presses rolling, perhaps beyond the target late next year. “The important thing is that the ECB intends to stay the course until September 2016 and that, we think, will be necessary,” said Mahmood Pradhan, deputy director of the IMF’s European department, referring to quantitative easing (QE). Letting the 1 trillion euro ($1.1 trillion) plus scheme to buy chiefly government bonds run longer could be better still, he suggested. “It may need to go beyond that,” he said. Worries about the global economy, prompted by a slowdown in China where shares slid more than 8% on July 27, are weighing on many countries in Europe.
