Brussels (Reuters) - the euro area countries need to consolidate public finances even if it is likely to constrain economic growth in the short term, the Organization for economic cooperation and development (OECD) said on Monday.
The OECD said that, as soon as emerging risks to increase the stability of prices - that the European Central Bank defines as inflation below, but close to 2% - in the medium term, the Central Bank should withdraw its monetary policy stimulus.
ECB interest rates are now at a record low of 1%.
The OECD, "non-standard measures (ECB) should continue" to be hurt at improvements in the monetary policy transmission mechanism said in a report.
He also stressed that for the euro area to restore healthy banking system and resolve remaining weaknesses sovereign debt crisis.
(Statement by Jan Strupczewski, mounting by Rex Merrifield)
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