ECB rate cut is expected within next two months

While UK and US interest rates look set to remain on hold for the foreseeable future, the European Central Bank (ECB) is expected to cut rates in the next two months. This month's 50 basis point rate cut by the Federal Reserve was not replicated by either the Bank of England Monetary Policy Committee or the European Central Bank and surprised many observers who had expected a 25 basis point cut in Europe. Indeed the UK's Monetary Policy Committee has indicated inflation is likely to remain above its 2.5% target for the majority of 2003, reducing the likelihood of further rate cuts....