A Christmas present from Germany
Article Abstract:
German interest rates could be reduced by 0.5% before the end of 1995, according to Kleinwort Benson. Both the money supply and inflation are subdued. Unemployment has risen which should dampen wage demands. The strength of the German mark is a key element in this picture. There is little likelihood of a fiscal stimulus for the economy so monetary looseness is more likely. A cut in interest rates is less likely in early Nov 1995 and inflation figures may not be as favorable as they appear, according to Klaus Baader from Lehman Brothers.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1995
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German interest rates: banking on a cut
Article Abstract:
German interest rates may be reduced according to Stephen King, an economist from James Capel. German economic growth is likely to be subdued although tax reductions are forecast for 1996. The German mark is strong and this is a reason for reducing interest rates. Exporting companies have been affected, and inflation is low with import prices falling. A rate reduction is likely in Jan 1996 if it does not occur in Dec 1995, most analysts argue.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1995
User Contributions:
Comment about this article or add new information about this topic:
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