Int. rate cuts in Europe

Press, 4 December 1982, Page 20

Int. rate cuts in Europe

NZPA Zurich Four West European central banks cut their basic interest rates yesterday, signalling cheaper money across the region. Spokesmen said the cuts by the national banks of Switzerland, West Germany. Austria, and the Netherlands were made in concert, and took into account developments in the money markets. The dollar, which has been falling against European currencies this week, finished the day at a low point of 2.4575 marks in Frankfurt as the interest rate falls sparked renewed speculation of an early cut in United

States discount rate, a dealer said.

The West German Economics Minister, Otto Lambsdorff. welcomed the Bundes-

bank's decision to cut its key discount and Lombard rates by a full percentage point to 5 and 6 per cent respectively, saying such a move would strengthen companies' readiness to invest. The Bundesbank move came after an announcement by the Swiss national bank that it was cutting its discount and Lombard rates, the rates it charges to other banks, by half a percentage point to 4.5 and 6 per cent. The Austrian central bank dropped its key interest rates by one point, taking the discount rate to 4.75 per cent and the Lombard rate to 5.25 per cent.

The Dutch central bank moved its rates down half a

point, to 5 per cent for bank rate and 5.5 per cent for the secured loans rate.