To cut or not?

Article Abstract:

German interest rates may be cut, according to Paribas Capital Markets. Inflation looks set to remain below 2% in mid 1995, and retail sales are subdued. A rise in consumption is needed for economic recovery to continue. German exporters are affected by the strength of the German mark, and the high value of the mark also creates problems for France. Capital investment looks set to continue since capacity utilization is high. The repo rate is likely to be cut, according to Paribas.

---

Cut deferred

Article Abstract:

German discount rates are not likely to be lowered before Sep 1995. Some analysts argue that the discount rate is unlikely to be reduced further, though the repo rate may be reduced by a small amount. Inflation is above the target rate which the Bundesbank has set at 2%. The German mark has fallen in value in Aug 1995, which should help exporters, but this has not offset a previous rise earlier in 1995. Exporters are likely to see their profits affected in both 1995 and 1996.

---

Germany: upstaged

Article Abstract:

The German Bundesbank tends to take the lead in world interest rate policy, but falls in rates in Japan and the US have meant the initiative has come from elsewhere. Denamrk and France followed the trend set by the US and Japan. German wage settlements concern the bank, and inflation, at 2.3%, is above the expected level, but money supply growth is within targets. Any rises in German rates are likely to be postponed until 1996, a year after they had been expected.

Similar abstracts:

• Abstracts: Time to account for our actions. Better pay reporting. Rising to the green challenge
• Abstracts: UK gilts: gilt glory. Links that are not so risk-free. Brighter now
• Abstracts: Reaching out to the nation's pet lovers. Buying into leisure
• Abstracts: Training for total quality. Gaining confidence through counselling
• Abstracts: Tread carefully through tangled insider laws. Profits from poverty. Promises, promises

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.