ECB will cut rates in bid to boost ailing economy, predicts expert

EUROPEAN interest rates could fall again by November as the ECB bids to boost the ailing EU economy.

IIB Bank chief economist, Austin Hughes said euro area inflation crept back to about the 2% upper boundary of the ECB’s target range in August, but a favourable inflation outlook and a slump in economic activity in the euro area means an early ECB rate cut should not be ruled out.

Mr Hughes added that the rate cut is likely to be half a percentage point, bringing official ECB rates to 2.75%.