April 29 - The ECB should do ''everything it can'' to tackle low growth and inflation, says the IMF’s Jose Vinals. But euro zone governments also have a part to play by really implementing their planned reforms.
I'm if I take not he and frank -- with cost saving yeah it's the IMF director for monetary and capital markets. Missed having on its the IMS can notch raised its concern about you know inflation in the years and in. Now should the ECB do something about this period of no inflation in the Euro zone -- Would we -- really concerned about is that the Euro area is strapped into a little growth annual inflation equilibrium. And is so far as real information. In addition to the temporary factors. Maybe indeed. The -- a part of city over rates of growth this is something that this will be remedied can hopefully see actors need to play the part. Poetry bode C needs to keep making sure. We told -- means a successful so. That. You know press to -- the -- maintained. The comprehensive assessment. That he's being carried out in its total up. These to make sure that banks have sufficient capital in order to provide created in accompanied the economic recovery in the recording great demand. When he takes place and also will be very important for increasing. The growth. Of team unity and a sustained basis that these structural reforms that are much talked about but we're very bitter election. He's their exception if you specific cases that these structural reforms getting enacted in these basically minor as soon as possible. Extra cash in the banking system in the eurozone has dropped below the knock -- 100 billion euros and this is putting pressure on. On the overnight it's short term money market rates which have -- now about the main refinancing rate. Is this a sign of normalization or a reason to be concerned. Well I think I think that term. Convenient. Some reduction in excess liquidity. He sees something we choose not to have which is not about time the question is how far East -- -- -- this is something that. We need to be assists. Depending on on on the future of pollution but so far I don't think that this -- say a tremendous cause for concern quite country. Not extend Tuesday Ukraine what is your assessment of the situation economics if you -- the situation in the Ukraine. Well as you know we can't we -- have -- an agreement we see Ukrainian authorities. And we are going to hit the discussion. I did I -- board and we hope that who grain and can. We place the policies that they have put forward. And that we can dep support team. These have policies that they seem to be a very important for the future of the -- to government he's very very committed. Me and finishing -- deep policies that they have. Agreed -- -- how are certainly. The right ones. How confident guy you then that the IMF were actually signed off on Wednesday. When this aid package that was agreed in March. But let me know -- -- church worked on board he's going to decide. We will have a discussion in this they said we can't we have confidence that the ACC -- basis for a -- Two. Move to a better economic situation. Now for my last question how much of -- risk do you -- can and does the Ukraine crisis post. To the economic outlook for the jurors on I think that the Ukraine crisis. -- -- two -- could be a significant risk. Had not only forty eurozone but be -- A significant reason for economies in central eastern and southern hero. Four economies. We -- -- central Asia. And more generally. -- it would to be an increase in global risk aversion Asa result of the geopolitical uncertainties. Here. So these why it would be very important. For peace geopolitical risks to. I think that is something which would be very very important time with the world already has many of the challenges that he task we face.