Rate cuts could drag economy into abyss

THOSE concerned with the future direction of the global economy will be further disturbed by talks of further European interest rate cuts.

Until recently, the general view was the next rate move in Europe would be upwards. A major report from the Organisation for Economic Co-operation and Development suggests both the US and the EU would move before the year end.

That judgment was offered in a recent report based on a trawl of the major economists across the 24 major economies who make up the OECD.