Bundesbank leaves rates unchanged

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The Independent Online
Bundesbank leaves rates unchanged

Germany's powerful Bundesbank held its interest rates unchanged yesterday, but made clear to financial markets it was ready for action and could pull the interest rate trigger at any time. Meeting for the first time after a four-week summer break, the central bank's council kept the discount and Lombard interest rates unchanged at 2.50 percent and 4.50 percent respectively.

But the bank made no comment on the level of its main money market interest rate, the securities repurchase rate or repo, saying merely that it would announce conditions for its next money market operations on Tuesday. Analysts said the bank's message underlined the one sent by the central bank sent to markets four weeks ago - as the mark dropped heavily against a robust dollar - that five years of easier monetary policy could now be drawing to a close.