Euro interest rate cut likely, say experts

WEAK economic conditions in the eurozone coupled with a modest recovery point to further easing of interest rates by the European Central Bank (ECB), IIB Bank chief economist Austin Hughes said yesterday.

He added that a further drop in euro area inflation should create scope for an ECB rate cut towards the end of the year.

Mr Hughes said the outlook for the eurozone may be brighter, but present conditions remain tough, with the drop in industrial output suggesting a lack of significant momentum.