ROME: The heads of Intesa San Paolo and Unicredit, Italy's two biggest banks, said on Thursday they expected the European Central Bank to cut interest rates at its next governing council meeting and launch other measures to boost the economy.

Speaking to reporters at the sidelines of a conference in Rome, Federico Ghizzoni, chief executive of Unicredit, said he expected the central bank to cut rates and start programme to buy assets, particularly corporate assets.

Intesa Chief Executive Carlo Messina also said he hoped the ECB would launch a 'funding for lending' operation, under which the central bank would offer loans to banks with conditions on lending out the money attached.