Financial Times FT.com

Pressure on ECB to soften tough line

By Ralph Atkins in Frankfurt

Published: January 22 2008 20:25 | Last updated: January 22 2008 20:25

The steep cut in US interest rates intensified the pressure on the European Central Bank to soften its hardline stance and pave the way for eurozone borrowing costs to fall as well.

The ECB dislikes any suggestion of being pushed around by financial markets or politicians. But it is aware that the economic outlook for the 15-country eurozone could change in the light of US events and that its reaction might have a direct impact on market nerves.

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