Azerbaijan, Baku, 12 April / Trend corr A. Badalova/ The European Central Bank (ECB) will follow other central banks in cutting interest rates before too long, Jennifer McKeown, expert on European economy of the leading British economic research consulting company Capital Economics, said.
"We still expect growing evidence of slowing activity and easing price pressures to prompt rate cutspretty soon," he said.
McKeown said the European Central Bank may cut interest rates by June.
On 10 April, the CEB administration decided not to change the key interest rate (4%), while the Bank of England cut interest rate by 0.25% to 5%. CEB's unanimous decision aims at counteraction to inflation in the Eurozone.
According to the Capital Economics expert, further strong gains in the euro or evidence of tighter lending conditions in the hard data could easily prompt the Bank to loosen monetary policy in the coming months.
"We still expect interest rates to fall to around 3% next year, rather further than the markets and most commentators currently expect," McKeown said.
Bloomberg reported that this week Washington hosted the meeting involving the Finance Ministers and the Presidents of the G8 central banks at which they stated the world economic development may deteriorate and expressed concern on weakening of dollar.
"Since our recent meeting many currencies have experienced unsteadiness and we are concerned about its impact on economic and financial stability," G8 report said.
The meeting approved of the plan aiming against credit crisis.
The correspondent can be contacted at: [email protected]