Possible interest rate cut of 0.5%

Brian O’Mahony, Business Correspondent

In their Monthly Market Focus AIB economists rule out any further US or Bank of England rate cuts.In fact they see them moving up in the second half if there are signs of economic pick up in the global economy.

They also point out that interest rates are at exceptionally low levels as the US in particular has taken radical action to simulate its own economy using both fiscal and monetary policy to achieve that end.