Cut in interest rates expected

THE odds have shortened on a 0.5% cut in European interest rates when the ECB meets today, analysts said.

Optimism of a cut of at least 0.25% rose following strong indications from top ECB officials that the economic environment in the eurozone facilitated a cut in interest rates.

ECB president Wim Duisenberg said inflation would fall significantly in 2004 paving the way for an interest rate reduction announcement today, analysts suggested.