Eurozone interest rates will almost certainly be cut again next week, the European Central Bank signalled on Monday, as collapsing German business confidence confirmed the devastating impact the bank crisis has had on eurozone growth.

Jean-Claude Trichet, ECB president, said easing inflation had cleared the way for lower official borrowing costs on November 6. The size of the cut has yet to be announced but financial markets expect a half percentage point fall to 3.25 per cent, with further cuts in December and next year.