Bank shares recover from early losses after credit rating downgrade panic

IRISH bank shares recovered from heavy early morning losses when investors panicked following a credit rating downgrade.

This news comes as a survey shows most economists think the European Central Bank (ECB) will not budge on interest rates until late next year at the earliest.

The Reuters poll showed none of the 78 economists polled said the ECB would change interest rates from a record low of 1% when it meets on September 2 and medians suggest the first move up to 1.25% won’t be until the last months of 2011.