German rates to stay unchanged

Wednesday 09 September 1998 23:02 BST

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GERMAN economic growth slowed sharply in the second quarter, according to official statistics released yesterday.

The Bundesbank said gross domestic product grew by 0.1 per cent in the three months to June, compared to a figure of 1.4 per cent in the first quarter.

Economists said first quarter growth was buoyed by one-off factors, and that the combination of low growth and low inflation in Germany meant the Bundesbank was unlikely to change interest rates this year.

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