Eurozone rate hikes possible if financial turmoil abates

---

PARIS, Nov 13 (AFP): Interest rates in the 13-nation Eurozone could rise if financial turbulence sparked by the US home loan crisis is contained, the IMF predicted yesterday.
"In the euro area and several other advanced economies, monetary policy has been appropriately kept on hold in view of the downside risks associated with the financial turmoil," the International Monetary Fund said in a report.
"The baseline forecast presumes these risks to dissipate gradually, and a further tightening may then be required. Such a stance would of course need to be reconsidered if the risks materialised and the slowdown became protracted," it said.
The IMF's Regional Economic Outlook for Europe report was on the whole optimistic, noting that "strong fundamentals should allow the European economy to weather the current financial turbulence relatively well."