Euroland waits on one last cut to interest rates

Threadneedle is expecting a stable environment for Euroland government bonds this year and believes ...

Threadneedle is expecting a stable environment for Euroland government bonds this year and believes there may be one more interest rate cuts in the eurozone during 2002. Sandra Holdsworth, executive director, fixed income at Threadneedle, says if inflation falls later this year, the European Central Bank may cut rates further from their current level of 3.25% to 3%. She believes the inflation picture in the region is set to remain under control and is also expecting a subdued economic recovery within the Euroland. Holdsworth says: 'We think there will probably be one quarter this year w...