The Central Bank is coming under increasing pressure to cut interest rates - sooner rather than later. It is clearly evident that interest rates here will have to be at the same level as German rates by the time monetary union begins next January. But when exactly the Central Bank would choose to begin the process has never been clear.

At the moment, the Central Bank sets the key wholesale money-market rate at 6.19 per cent. If German rates stay at the same level as they are at now - which looks almost certain - then Irish rates have to be 3.3 per cent on January 1st.

As far back as the revaluation of the pound's ERM rate in May, the bank said it would leave these cuts "as late as possible, within the inevitable constraints which EMU entails."

And that has remained its official line. While central bankers insist they are not under any pressure from Germany to begin the process, this is clearly not the case. The speech from the president of the European Central Bank (ECB) yesterday is only the latest in a long line from EU central bankers pointing out that convergence of interest rates cannot be left to the last possible moment. The ECB now wants a calm run-in to the birth of the euro. The Danish currency - not set to be a founder member - has been coming under some pressure over the past week and others such as the Norwegian and Swedish currencies have also had pressure applied since the beginning of the turmoil.

As a result, the ECB is anxious that no currencies within the €11 come under pressure - and to make doubly sure of that, it does not want to see any currency obviously out of line.

Every Monday now when the Bank announces its weekly "repo" tender - the rate at which it supplies funds to the money market - there is an expectation that the rate at which it offers funds to the markets will be below the 6.19 per cent which has prevailed in recent months. One Monday soon, this will happen.