Bundesbank cuts repo rate again

The Bundesbank yesterday cut its repo rate, its most important money market rate. This dropped sharply from 4.3 per cent last week to 4.2 per cent, and was the fourth cut in five weeks. However, economists do not expect a reduction in the official discount or Lombard rates after today's Bundesbank council meeting. Figures yesterday showed that the German economy rebounded in the second quarter thanks to increased consumer spending, investment and construction.