ECB will consider further bank rate cuts

WITH ECB bank rates still well ahead of the US — 2% against 1.25%, it would be wrong to rule out further cuts.

In his comments after the dramatic 0.5% cut yesterday, ECB President Wim Duisenberg made it clear the bank will act again if necessary.

This seemed to herald a change of stance by the ECB which has been slow to follow the slash interest rate policy adopted by the United States once it became obvious the economy there was in trouble.