ECB likely to cut interest rate

The European Central Bank left its benchmark interest rate unchanged on Thursday, however, a majority of policy makers in the region are showing willingness to cut the rate. The reduction is likely to be seen early next year if the economy does not pick up. In the meanwhile, Germany and Austria suggested that an improvement is unlikely, forecasting scant growth for both economies in 2013. In addition, the ECB has revised down its region's growth forecasts for 2012 and 2013, saying the economic weakness will persist in the next year as well. The economy is now expected to shrink by 0.5% this year, more than the 0.4% contraction it predicted earlier in September, while the growth forecast for 2013 stands for 0.3 contraction.

"If the situation does not improve, and there is relatively a small chance there will be a significant improvement, it is possible to expect a move in interest rates next year," said Makuch, who is also the governor of Slovakia's central bank.