FRANKFURT—The European Central Bank has been right to maintain its easy money policy as inflation is set to fall after “transient boosts” from supply snags that may extend into next year, the International Monetary Fund said on Thursday. Backing from her former employer was likely to bring some relief to ECB President Christine Lagarde as she struggles to persuade investors that she is not about to jack up interest rates in the face of record inflation. The Washington-based institution said past data suggested that wages in the eurozone would rise only modestly and that inflation, which hit 5.1 percent last month, would fall back below the ECB’s 2 percent target. “We expect inflation to fall slightly below the European Central Bank’s target once the pandemic fades,” read a blog post signed by managing director Kristalina Georgieva and two other officials. “The ECB has appropriately decided to maintain an accommodative monetary …
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