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%.

EUROPEAN Central Bank (ECB) economist Otmar Issing has appeared to raise prospects of a cut in European interest rates for the first time since June 2003.

GREECE has overtaken Ireland as the inflation capital of Europe.

The market is infatuated with the euro which rose to $1.2450. Richard Blackden reports.

The dollar has fallen to new historic lows against the euro, this time sent reeling by a report suggesting intervention from the European Central Bank to halt the single currency’s rapid rise is some way off.

A €62bn plan to develop transport and research growth announced by the European Commission is set to benefit Ireland.

THE European Central Bank may reduce its benchmark interest rate for the third time in seven months this week as the economy stagnates and the euro’s advance slows inflation, economists said.

BETTER than expected first quarter growth figures in the US of 1.9%, against earlier estimates of 1.6%, put some spine back into the dollar yesterday.

THE cost of home loans has fallen sharply after two of the country's biggest mortgage lenders cut their variable rate.

JITTERY stock markets and a strong euro rule out a rise in European Central Bank interest rates next week, economists said in a Reuters poll, and an increasing number say rates could stay on hold until next year.

Shares are moving sharply higher on all the European stock markets this morning following last nights rally on Wall Street.