Tietmeyer bullish on rate cuts

Tietmeyer bullish on rate cuts

Hans Tietmeyer, president of the Bundesbank, said the key repo rate could fall from its current level of 4.3 to 4 per cent. Mr Tietmeyer forecast further falls in the inflation rate, currently at 2.3 per cent, in August and September. He defended the Bundesbank's monetary approach, which pays particular attention to the behaviour of the M3 money supply series saying that "we have an M3-oriented monetary policy because M3 is a precursor of inflation".