Frankfurt - European Central Bank (ECB) chief Jean Claude Trichet signalled Monday that the bank's rate-setting council might deliver another cut in borrowing costs at its meeting next month.

"I consider possible that the Governing Council will decrease interest rates once again at its next meeting on November 6," said Trichet in a speech delivered in Madrid and posted on the Frankfurt- based bank's website.

"It is not a certainty, it is a possibility," he said with analysts expecting the ECB to cut borrowing costs again next month by 50 basis points, or half of one per cent.

The ECB delivered a 50 basis points cut in borrowing costs earlier this month as part of a coordinated effort by the world's leading central banks to shore up investor and economic confidence. This lowered the cost of money in the 15-member eurozone to 3.75 per cent.

However, since then the economic climate in the eurozone has continued to worsen with business confidence in the currency bloc's two biggest economies - Germany and France - falling sharply.

"New information is likely to indicate a further alleviation to upside risks to inflation in the medium term," Trichet said in his speech on Monday.

Two key surveys to be released Tuesday are also expected to show consumer confidence in France and Germany sinking as the economic gloom sets in.

At the same time, recession fears have triggered a global selloff of shares around the world as leading companies point to worsening business conditions as they roll out their third-quarter earnings.

Added to worries about the economic outlook, signs that inflationary pressures are weakening have given the ECB room to move on rates.

"Taking into account the recent decline in commodity prices together with the substantial weakening demand that has emerged lately, upside risks to price stability have diminished," said the ECB chief.

Key data to be released Thursday is forecast to show eurozone inflation edging down to 3.3 per cent in October from 3.6 per cent in September.

In particular, this follows the recent fall in energy costs, with oil prices sliding to about 63 dollars a barrel in late European trading on the prospects of falling demand. In July, oil prices were heading towards 150 dollars a barrel.

Both the US Federal Reserve and the Bank of England are also expected to move to shore up investor and economic confidence by cutting rates at their next meetings. (dpa)