Interest rates are likely headed down, at least in Europe

By DAVID McHUGH
AP Business Writer

FRANKFURT, Germany (AP) — The European Central Bank appears ready to start cutting interest rates before the U.S. Federal Reserve. Analysts say a quarter-point cut from the current record-high rate of 4% is expected when the bank’s policymakers meet in Germany on Thursday. The eurozone will become the biggest rich-world economy to start easing borrowing costs for businesses and consumers as inflation slowly recedes if the cut happens. The Fed led the way when it came to raising interest rates more than two years ago. But no change is expected at its policy meeting next week. The ECB sets monetary policy for the 20 European Union countries that use the euro currency.