Decline in inflation gives rise to speculations of rate cut by ECB

FRANKFURT, Dec. 8 (Xinhua) -- As the European Central Bank (ECB) is set to hold its regular rate-setting meeting next week, the recent decline in inflation has given rise to speculations that the bank will cut its interest rates, German media reported on Friday.

Traders are betting on drastic rate cuts by the ECB next year, given that inflation has been falling at a faster pace than expected, German media finanzmarktwelt reported.