ECB expected to cut interest rates

<p>Interest rates are expected to be cut by the ECB.</p>

The European Central Bank (ECB) is expected to announce a cut to interest rates in Europe later today (May 2nd).

It has been holding off a change to monetary policy for several months, but analysts are expecting the body to confirm a cut from 0.75 per cent to 0.5 per cent this afternoon.

Howard Archer, European economist at IHS Global Insight, stated that even if interest rates are held by the ECB today, this will only be "delaying the inevitable", as rates will have to come down.

A Reuters poll of 76 economists taken last week resulted in a slim majority forecasting a cut to interest rates, while ECB vice-president Vitor Constancio recently hinted this will be the course of action taken by the bank.

The decision on interest rates is set to be announced at 12:45 BST.

Teams from the European Commission, ECB and International Monetary Fund recently released a report predicting Greece's economy will return to growth in the near future.

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