ECB Rates forecast to drop again.

Economists at Citigroup have forecast that the European Central Bank will slash rates by three-quarters of a point, to 2.5pc, at its December meeting. Recent data swowed that euro area output was already falling when the ECB raised rates to 4.25pc in July.

JPMorgan Chase also yesterday revised their interest rate forecast, saying ECB rates will fall to just 1pc next year.