ECB ‘has scope to cut rates by 0.5%’

ROYAL Bank of Scotland group chief economist Jeremy Peat said there was still scope for the ECB to cut rates by as much as 0.5%.

But the bank appears to have ruled out any cut in the short term, he said.

Mr Peat was addressing an Ulster Bank breakfast in Dublin on the future outlook for the global economy. On Ireland, he was positive. This year he forecast 2.5% GNP, but warned the gap between GDP and GNP has become too wide due to the high reliance on export-led growth attributable to the US-dominated pharmaceutical sector.