ECB rules out further interest rate cut

THE European Central Bank is set to disappoint markets by refusing to cut interest rates due to the expected quick end to the war on Iraq.

This follows a weekend statement by three of the ECB’s policy makers who said a rapid end to the war would boost economic recovery across the globe.

The statement appears to rule out an early reduction in the cost of borrowing across Europe anticipated by analysts as a further boost to the ailing eurozone economy.