25 April 2001, 14:36  OUTLOOK ECB rates seen unchanged April 26 by 30 out of 33 economists

FRANKFURT (AFX) - The European Central Bank will not cut leading interestrates at its governing council meeting next Thursday, according to a poll ofeconomists by AFX News and Agence France-Presse. Of 33 economists polled, only three forecast that rates will be cut at the April 26meeting. A majority of the economists polled now expect the ECB will not cut interest ratesuntil June, after it confounded expectation on April 11 by leaving rates unchangedand following the decision with a distinctly hawkish news conference. Some seven economists still see an interest rate cut in May, however, when datashould start to weaken and the ECB has a chance to explain its move at a newsconference. Some economists said there is an increasingly real risk scenario that the ECB willnot cut interest rates at all this year, as March euro zone HICP showed inflationremaining stubbornly above the ECB's stability ceiling of 2 pct. In their baseline scenarios, however, all economists polled expect an interest ratecut of at least 0.25 pct this year.

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