At yesterdays monthly ECB meeting they have decided, unsurprisingly, to keep interest rates steady at 1.5%.
What is making the news however is that it is highly anticipated that we are in for at least two 0.25% reductions over the next six months, starting as early as November, making for a very happy Christmas.
The markets would like the reductions to come quicker than that but it is understood that they will remain unchanged until JC Trichet steps down next month, sparing him the embarrassment of having to make good his epic blunder of two rate rises this year, further damaging Europe's hopes of some form of growth.
FS
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