Irish Life has predicted that the ECB will be obliged to cut interest rates again following this morning's figures on the German economy.
According to Mr Eugene Kiernan, Head of Asset Allocation at Irish Life Investment Managers, Mr Wim Duisenberg will find it very difficult to continue to resist such action as the German economy continues to struggle.
He added that while the cuts are unlikely to materialise at this Thursday's ECB meeting, they are likely to come soon.
"Looking at the latest figures published today (on the German economy)the news from industry for May continues to be downbeat," Mr Kiernan said.
"Although recent surveys of business intentions show some up-tick - which we may see in the third quarter- the actual numbers on the ground show a continued decline.
"Weakness was fairly well spread but worst hit was the construction sector where bad weather played a part. Factory production is now basically flat on the year."
Unemployment also remains high. On a like for like basis with the rest of the Eurozone the German figures stand at 9.4 per cent, (unchanged on the previous month) against 8.8 per cent for the region as a whole.