Interest rate cuts in eurozone likely after poor German results

INTEREST rates in the eurozone could be cut again soon from the historically low level of 2% following worse than expected economic data in Germany yesterday.

Irish Life Investment Managers Head of Asset Allocation Eugene Kiernan believes pressure for further interest rate cuts in Europe will increase after the publication of further disappointing figures on the German economy.

"While Wim Duisenberg has set himself against a further round of cuts in the short term, he's going to find it very difficult to continue to resist such action as the major economy of Europe continues to struggle," he said.