IMF chief backs European Bank

The International Monetary Fund's new director for Europe, Antonio Borges, yesterday expressed support for the European Central Bank's current policy stance.

"The European Central Bank has strong credibility," Borges, a former deputy governor of the Bank of Portugal, said.

He cautioned, however, that inflation could increase as the eurozone economic recovery picks up.

Rising commodity prices were especially a concern for inflation, although long-term inflationary expectations are still very low, he added.