An investment analyst has said that cuts of up to 0.75 points in euro zone interest rates are possible in the second half of this year.
The chief investment officer of Belgian-Dutch bank Fortis, William De Vijlder, was speaking in Dublin. Fortis is An Post's partner in its Postbank venture.
Mr De Vijlder said the cuts were likely in the face of continuing pressure on international credit markets. He also said low consumer confidence, coupled with higher interest rates, could drive western economies into recession in the year ahead.
The analyst said the ECB had become 'decidedly less hawkish' in recent months.
Mr De Vijlder also said the Irish housing downturn could prompt a fall in consumer spending this year, based on the American experience. 'This situation could be exacerbated, by a tightening of credit policy by financial institutions,' he added.
