The European Central Bank (ECB) looked set to hold interest rates today, although analysts expect falling consumer and business confidence across Europe to spur it to cut them again soon.
Leading economists polled by Reuters said the ECB, which joined the US Fed 10 days ago in cutting rates by a half point in reaction to the attacks on the United States, will hold fire at its governing council's meeting today.
But they said it may ease borrowing costs again - possibly at one of its next two meetings on October 11th and 25th.
"We don't expect a further monetary easing at today's meeting", said Mr Gregor Beckmann, an economist at HSBC Trinkaus in Duesseldorf. "But we expect a further rate cut in the fourth quarter".
The ECB, whose rates stand at 3.75 per cent, is due to announce the rate decision later this morning. No news conference is scheduled after the council meeting.
Economists say the deteriorating economic outlook and weakening inflationary pressures will take centre-stage in ECB thinking in coming weeks, pushing still buoyant money supply even further toward the wings.