Bundesbank leaves its rates unchanged

THE Bundesbank policy making council left the German discount and Lombard rates unchanged yesterday - a move generally expected by financial markets although domestic inflation is now at eight year lows.

The central bank's main money market rate, the repo, was kept at a fixed 3.30 per cent for the next two weeks, the same level it has been fixed at since February.

Traders instead expect the Bundesbank to wait for more details on growth in M3 money supply, a key indicator for the central bank's council, before taking any action.