Interest rate cut still on cards

AN interest rate cut is still on the cards in spite of last week’s upbeat comments by the European Central Bank, according to IIB Bank economist Austin Hughes.

Mr Hughes said yesterday that a rate cut was “still a reasonable prospect” and that borrowers could look forward to a 0.25% cut before the end of June.

ECB president Jean-Claude Trichet surprised observers last week with an analysis that was more positive than expected. Mr Trichet said there was no evidence to challenge the bank’s assessment of a modest economic recovery.