Speculation mounts over ECB rate cut

SPECULATIONS of a cut in interest rates by the European Central Bank rose yesterday as the Swedish Central Bank cut rates 0.5% to 1.5%.

Sweden’s economic performance has been similar to the EU’s and the cut is seen as significant from an ECB perspective.

The possibility of an ECB rate cut was strongly denied last week by various member states, including Germany and Holland. However, Reuters have reported that the ECB was split down the middle on lowering rates.