German economy on the rebound

The German economy rebounded more strongly than expected in the second quarter of the year, official data showed yesterday but continued high unemployment in August left little reason for cheer.

The Bundesbank left its discount and Lombard rates unchanged after its regular meeting. The German discount rate remains at 2.5 per cent and the Lombard emergency financing rate at 4.50 percent. The central bank's main money market rate, the repo, was also held steady at 3 per cent.