Rates may be cut again

The eurozone’s deepening economic turmoil will likely force the ECB to cut its main policy interest rate to a new record low by the year’s end, a Reuters poll has showed, marking a decisive shift in the consensus view.

Just two weeks ago, economists predicted the ECB’s main refinancing rate would stay on hold at 0.75% right through to 2014.

Since then, renewed alarm about Spanish and Greek government finances, plus some poor economic data, prompted many of the survey’s 70 economists to expect the ECB to ease monetary policy again well before then.