Money markets are signaling the European Central Bank will cut borrowing costs within the next three months even as the main rate was left unchanged yesterday.

Greek leftists rejected a last-ditch proposal by the head of state yesterday to put technocrats in charge of the country, as financial markets slid on speculation that political turmoil would force Athens out of the eurozone.

IRISH and European shares fell to near year lows yesterday as gold hit new records as investors sought a safe haven amid fears the US will re-enter recession and Italy and Spain could be frozen out of sovereign dept markets just like Ireland, Portugal and Greece.