There is a "widespread expectation" that the European Central Bank(ECB) may lower interest rates in the coming months, it has been claimed.

Paul Niven, the head of asset allocation for F&C Investments, has predicted that a change may be made by the end of 2008, despite the ECB voting on October 2nd to maintain rates at 4.25 per cent.

The last alteration was made in July, when rates were increased in a bid to control inflation in the Eurozone economy.

However, recent events in global financial markets may prompt the ECB to take action, Mr Niven stated.

"Despite the no change vote today, there is now a widespread expectation that rates in the ECB will be heading downward soon," he commented.

In September, the Bank of England's monetary policy committee voted to maintain the UK's base rate at five per cent.