IMF raises Eurozone 2008 growth prediction

FRANKFURT, Germany, June 2 (UPI) -- The International Monetary Fund said Monday the Eurozone economy would grow faster than previously expected.

Growth in the Eurozone's 15 countries would reach 1.75 percent for 2008 and 1.25 percent in 2009, the IMF said.

It had previously predicted a growth rate for 2008 of 1.4 percent, Financial Times reported.

In noting a record 3.6 rate of inflation for the Eurozone in May, the IMF report urged the European Central Bank to maintain its current interest rate.

"In these circumstances, it is appropriate to keep policy rates on hold," the IMF report said.