Weakening dollar may force ECB into further rate cuts to boost growth

AS the euro moved up towards $1.18 yesterday a top economist warned the ECB may be forced to cut rates by 0.25% in the months ahead to boost economic growth.

If, as most economists now believe, the dollar will continue to weaken, any move above $1.20 against the euro will hit the eurozone recovery hard and may force the ECB to cut rates in order to boost exports.

Economist Alan McQuaid says the likely hike in British rates next month may allow the ECB to hide behind their decision to raise rates.