ECB may cut rates once again

The European Central Bank (ECB) is faced with the need to continue cutting interest rates. This may contribute to the fact that retail sales fell in the eurozone on the basis of the seventh month in a row, and lending homeowners and businesses grew lowest rate in four years. According to retailers this month and sales were falling and the number of jobs, and profitability against a background of deepening recession caused a reduction in consumer confidence and spending. Tightening of lending by banks has led to slower growth in November of outstanding private sector funds the eleventh month in a row. According to calculations the ECB last month had risen to 7.1% after rising 7.8% in October. These data indicate that 15 countries of the eurozone on January 1 will mark the tenth anniversary of the euro against the backdrop of deteriorating economic situation. This allows investors to expect further interest rate cuts the central bank in the first month of the year, although the statements of official representatives of the ECB's reluctance to suggest that, since the beginning of October the value of money and was so significantly reduced - by 175 basis points to 2,5% per annum, according to "Interfax" referring to agency Bloomberg. "The ECB needs to go further", - believes Bank of America economist Gilles Mok, who previously worked at the central bank of France. Eurozone, in his opinion, is facing a "severe and prolonged recession." "Consumer spending, if we look ahead, remain so weak, they were the last few months," - said the chief economist for Europe, Fortis Nick Kounis.