Interest rate cuts expected on both sides of Atlantic

Business Editor

Bank chief economist, Austin Hughes said pressure was building for lower interest rates on both sides of the Atlantic and he expected a cut in the coming weeks.

Rates are currently 3.25% in Europe and 1.75% in the United States. A half a percentage point cut would bring rates here down to 2.75%, which is still 0.25% above their all time low 2.25% since the introduction of the European single currency.