26 June 2001, 16:14 Ifo's Sinn says ECB to cut rates by 0.25 pct this year as inflation eases
FRANKFURT (AFX) - President of the Ifo economic research institute
Hans Werner Sinn said he expects the European Central Bank to cut
interest rates by 0.25 pct this year as inflationary pressures in the
euro zone ease.
"Since inflation is set to ease in the euro zone in the coming
months, we are expecting the ECB to cut rates by a further quarter of a
point during the course of the year", Sinn told the Ifo institute's
annual meeting.
"A deeper cut would be preferable to Germany, but for many other
countries the level of interest rates is already lower than before and
therefore having a very expansionary effect", he added.
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