There is no pressure from Europe for rapid interest rate cuts here, the Minister for Finance, Mr McCreevy, has said.

Speaking yesterday before his opening of the Euro Changeover Board's new offices, Mr McCreevy also laid down a very strong line on public sector pay.

On interest rates he said: "It is a mistake for anyone to believe that there is any pressure from the President of the European Central Bank Mr Wim Duisenberg to reduce rates." He added that Irish wholesale interest rates will have to fall to German levels of 3.3 per cent by the end of the year, but until then it is a matter for the governor of the Central Bank, Mr Maurice O'Connell.

"He has been quite explicit about how we will move from the time of the revaluation communique last March. And there is no doubt what way that is - we are not going to move until very late in the year."

Mr McCreevy later insisted that he has no knowledge of when the Bank will cut rates. "I have not asked and I will not ask," he said.

He also insisted that the Government has not done a U-turn on nurses pay and that it will be arguing forcefully at the Labour Court that any agreement with the nurses should be consistent with public sector pay agreements generally.

Mr McCreevy also dismissed fears that dramatically lower interest rates will boost inflation. He pointed out that lower interest rates were the main selling point of the euro and that while some people have expressed fears about the impact, we have "no option".