June 29 - The European Central Bank is expected to reduce interest rates when it meets on Thursday. The Bank of England is under pressure to do the same.
They bent the rules to save Europe on the markets -- uploaded. The deal to allow more flexibility and bank bailout Sanchez surging across the region. The Euro followed even though many commentators say the accord of his -- silver bullets to the Euro zone's woes. Still Spain and Italy may be justified in saying it doesn't triumph yields on ten year debt falling dramatically in the morning session. ECB chief Mario Draghi welcomed the decisions that sounded a warning it. Of course both these teams have to be accompanied by strict conditionality. Otherwise they're not Craig group and they will not achieve good results for which they've been created. But it's all about interest rates in the week at Australia kicks off action on Tuesday. The Bank of England policy later in the week Governor Mervyn King has suggested the UK's record low -- point 5% rate could be cut further to support the ailing economy. A Reuters poll suggests the ECB will trim interest rates on Thursday. Most economists predict a quarter of a percentage point cut to three quarters of a percent but they will stay until 2014. At least. Rates mutual offers significantly more to -- pretty key. On very generous terms of banks and ideally. It -- also provide a safety net falls over this. By doing something like the quantitative easing which we have seen and are seeing in the UK. In the US and Japan and some other countries. Well at the ECB needs any encouragement to cut rates it could stop by looking at the rising rate of unemployment. -- on Monday is likely to show it rose to eleven point 1% meaning more than seventeen million people are out of work across the Euro zone. And with spending power reduced Europe's services sector probably shrank again in June in Germany is affected growing -- that most sluggish pace in six months in an. But stay with us for updates throughout today I'm Nigel Stephenson -- this is --