ECB rate cut likely before end of year

INTEREST rates could be cut before the end of the year, but many expect the European Central Bank (ECB) to keep them on hold next week.

The ECB is meeting on Thursday week to discuss the possibility of a rate cut as tensions rise in Europe amid the economic downturn.

However, given that next week’s meeting will be the last for current president, Jean-Claude Trichet, commentators expect the bank to keep rates on hold at 1.5%, but they are not ruling out a cut in the coming months.