Data shows interest rates are set to fall

EUROPEAN interest rates are set to fall, the latest economic data shows.

Most economists believe the European Central Bank (ECB) will cut rates next week following a further falls in inflation and consumer sentiment in the euro zone.

Hopes of another rate cut were further boosted by Bundesbank president, Ernst Welteke who has given a stronger indication than ever before that the ECB could cut rates at its policy setting meeting next week.