European central banks under pressure to cut rates

The European Central Bank and the Bank of England are under mounting pressure to cut interest rates aggressively this week amid signs that the economic slump will be deeper and more prolonged than previously expected.

While many observers think the European bank will reduce its benchmark rate by half a percentage point to 2.75 percent _ with some thinking it may cut it by three quarters of a point_ the Bank of England is expected by many to lower its rate by a whole percentage point to 2.00 percent, which would be equal to its lowest level since the bank was founded in 1694.

Both banks will be meeting to decide rates on Thursday.

Since their last …